Preheat your oven to 375°F (190°C).
Line a baking sheet with parchment paper and lightly spray with cooking spray.
In a mixing bowl, whisk together the flour, baking powder, cinnamon, salt, and sugar until well combined.
In a separate bowl, mix the milk, applesauce, eggs, and vanilla extract. Stir well until smooth.
Gradually add the wet ingredients into the dry ingredients. Mix until just combined.
Fold in the diced apples gently until evenly distributed throughout the mixture.
Using a spoon, drop heaping tablespoons of the batter onto the prepared baking sheet, spacing them about 2 inches apart.
Bake the fritters in the preheated oven for 18-20 minutes or until they are golden brown and cooked through. A toothpick inserted in the center should come out clean.
Allow the fritters to cool slightly on the baking sheet before transferring them to a wire rack.
Serve warm or at room temperature, optionally dusting with powdered sugar or drizzling with a glaze made from powdered sugar and milk.