Preheat oven to 375°F.
In teapot, pour boiling water over cinnamon apple herbal tea bags.
Cover and brew 5 minutes.
Remove tea bags.
In 1-quart saucepan, combine 3/4 cup tea and confectioners' sugar.
Chill remaining tea at least 10 minutes.
Boil tea-sugar mixture over medium-high heat 7 minutes or until thick and syrupy; set aside.
In large bowl, combine chilled tea, flour, granulated sugar, margarine, egg, baking powder and salt.
With electric mixer or rotary beater, beat to moisten, then beat at medium speed 2 minutes.
Fold in raisins and 1/2 cup apples.
Spread into greased 8-inch round cake pan.
Bake 25 minutes or until toothpick inserted in center comes out clean.
On wire rack, cool 10 minutes.
In small bowl, combine tea-sugar mixture with remaining 1/2 cup apples, walnuts and lemon peel.
Spoon over warm cake.
Garnish, if desired, with apple slices and serve.