Tasty Baked Beans

Soak beans overnight or use quick soak method on bean package. After soaking, drain and rinse under cold water. Put in large pan and add 3 ½ cups water. Bring to a boil, turn to low and boil gently for about 45 minutes. Fry bacon until crisp, drain, and add bacon to beans. Then add onion, bay leaf, garlic, salt and pepper. Continue to cook on simmer until beans are tender. This will take about 1 ½ hours. More water may be added if necessary. Drain beans, reserving liquid. Remove bay leaf. Combine apple sauce, ketchup, vinegar, brown sugar, Worcestershire sauce and dry mustard. Add to the beans along with 1 cup of the reserved bean liquid. Bake covered for 3 hours at 325°F adding more liquid, if necessary.