Cut potatoes into 1/4- to 1/2-inch pieces. Place in microwavable casserole. Microwave, covered, at HIGH 3 minutes; stir. Microwave 2 minutes more or until just tender; set aside.

While potatoes are cooking, slice sausage into 1/4-inch pieces. Place in large skillet. Heat over medium-high heat. Cook, stirring occasionally, 8 minutes or until browned and no longer pink in center. Remove sausage from pan with slotted spoon; set aside. Pour off drippings.

Melt butter in skillet. Add potatoes and caraway seeds. Cook, stirring occasionally, 6 to 8 minutes or until potatoes are golden and tender. Return sausage to skillet; stir in cabbage. Cook, covered, 3 minutes or until cabbage is slightly wilted. Uncover and stir 3 to 4 minutes more or until cabbage is just tender yet still bright red.