Preheat oven to 325 degrees. Using a regular muffin pan, fill 12-16 cups with paper liners 3/4 full and set aside. Cut gumdrops and orange slices into small pieces. In a small bowl, put some of the flour over the cut pieces and separate so they are no longer stuck together, then set aside. In bowl of mixer on high speed, cream butter and granulated sugar, then add egg and beat hard until combined. Add spices to remaining flour and sift. Add applesauce to butter, sugar and egg mixture in mixing bowl, then add the gum drops and orange slices from the small bowl. Mix baking soda and water together and add to mixture, then add flour with spices and vanilla last. Mix on low speed to combine. Fill 12-16 muffin cups and bake in a preheated oven for 35-45 minutes or until firm in the center. Check with a toothpick and bake longer, if needed. If using frosting, whip ingredients together until light and fluffy. Add more milk or sugar, if needed. Can also be served plain or dusted with powdered sugar.