Place sausage, potatoes, and water into a Dutch oven or large pot; cover tightly and cook over medium-high heat 8 minutes, stirring occasionally. Meanwhile, cut onion into 12 wedges; core and cut each apple into 8 wedges. Drain sausage and potatoes, and cut potatoes into wedges.
In large skillet, cook and stir onion and apples in 1 tablespoon butter 4 minutes, or until apples are just tender. Remove from skillet. Heat remaining 1 tablespoon butter; add potatoes and cook, covered, over medium-high heat until tender and golden brown, stirring occasionally (about 5 minutes).
Combine vinegar, sugar and caraway seed. Reduce heat; return sausage, apple mixture and vinegar mixture to frying pan and cook 1 minute, or until heated through, stirring gently. Sprinkle with parsley and serve. Serves 4.