Preheat oven to 350°F. Grease a 13x9-inch baking pan.
In a bowl, mix together sugar, oil, extract, and eggs.
In another bowl, sift together flour, baking soda, baking powder, salt, and cinnamon.
Add dry ingredients to egg mixture. Stir well. Stir in apples. Add walnuts. Mix thoroughly.
Pour batter into prepared pan. Sprinkle butterscotch chips on top. Bake for 1 hour, or until a tester inserted into the center comes out clean.