Question
I have a young Scarlet (something) apple tree, second growing season in my yard. It has a white fuzzy stuff, like cotton candy, on the new, smaller branches. There are tiny little apples set on the tree--I live in the river agricultural area of Albuquerque, New Mexico (zone 7 I believe).

How to treat this? I prefer to use bio-friendly treatments, and just now sprayed by hand with a liquid soap/red chile powder in water combination.

Answer
Yeah-- the problem is an insect called a wooly aphid.  The soap mixture will kill them if you spray every 3-4 days.  You can also wipe them off with your fingers if you want to.  They will come back, so dont give up on the insecticidal soap treatment.  Good Luck.