Make the Caramel Sauce (can be made and store in the refrigerator up to 1-2 weeks ahead of time.)
Cream Cheese Layer:
In a medium bowl, beat the cream cheese until smooth. Add powdered sugar, vanilla and egg and mix until smooth. Refrigerate until ready to use (or can be made 2-3 days ahead of time).
Grease and flour a 9 or 10-inch bundt pan. Set aside. Preheat oven to 350 degrees F.
In a medium bowl, whisk together the flour, baking soda, cinnamon, nutmeg and salt. Set aside. Toss the diced apples with lemon juice (keeps them from browning) and set aside.
In another large mixing bowl blend the oil and sugars, then mix in the applesauce and vanilla. Add the egg and mix until well blended. Stir in the dry ingredients, just until incorporated, then stir in the diced apples. Don't over-mix. The batter will be thick.
Pour half of the batter evenly into the prepared bundt pan. Spoon the cream cheese mixture in a line along the center of the batter (being careful not to let it touch the sides of the pan). Spoon the remaining batter on top.
Bake in preheated oven for 60-75 minutes or until a toothpick inserted in the cake comes out clean. Remove from oven and cool for 5-10 minutes before inverting onto a wire rack.
Once cooled, cut and serve with caramel sauce drizzled on top. Store leftover cake in the refrigerator.
Apples: I prefer Granny Smith or HoneyCrisp apples for baking, but really any kind of apples will work for this recipe! I also use my Johnny Apple Peeler/Corer to make preparing and dicing the apples really quick and easy.Make ahead instructions: The caramel sauce and filling can be made 2-3 days in advance and stored in the refrigerator. Freezing instructions: Allow the cake to cool completely and cover it well with plastic wrap and aluminum foil. Freeze for up to 3 months. Allow it to thaw overnight in the refrigerator and set it on the counter to come to room temperature before serving. Serve with warm caramel sauce.