Cream together shortening and sugar. Beat in eggs one at a time. Beat until light and fluffy. Stir in one cup apple butter. Sift together flour, baking powder, baking soda, salt, cinnamon and nutmeg. Add flour mixture to creamed mixture alternating with buttermilk.
Turn batter into 2 greased and lightly floured 9x1 1/2 inch round pans. Bake at 350 degrees for 30-35 minutes. Cool for 10 minutes then remove from pan.
To making frosting, blend butter, cream cheese, powdered sugar and vanilla.
Spread one layer of cooled cake with 1/4 cup of remaining apple butter. Top with one cup frosting, spreading evenly. Cover with second cake. Frost entire cake.