Preheat your oven to 350°F (175°C) and line a muffin pan with cupcake liners.
In a bowl, whisk together the flour, sugar, baking powder, ground cinnamon, and salt until well combined.
In a separate large bowl, cream the softened butter until smooth and creamy.
Beat in the eggs, one at a time, followed by the vanilla extract, until the mixture is well incorporated.
Gradually add the dry ingredient mixture to the wet ingredients, alternating with the milk. Begin and end with the dry ingredients. Mix until just combined.
Gently fold in the chopped apples until evenly distributed throughout the batter.
Using a scoop or a spoon, fill each cupcake liner about two-thirds full with batter.
Bake in the preheated oven for 18-20 minutes, or until a toothpick inserted into the center of a cupcake comes out clean.
Allow the cupcakes to cool in the pan for a few minutes before transferring them to a wire rack to cool completely. Once cooled, frost the cupcakes with caramel frosting.
For a finishing touch, garnish each cupcake with a drizzle of caramel sauce and a thin apple slice.