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In a large skillet, combine brown sugar, vinegar, water, oil, caraway seeds, salt and pepper. Cook for 2 to 3 minutes or until hot, and brown sugar is dissolved, stirring occasionally.
Stir in the cabbage and apple. Cook, covered, over medium-low heat, for about 5 minutes or until cabbage is crisp-tender, stirring occasionally. Serve with a slotted spoon.