Core, peel and dice the apples into 0.25-0.5 inch chunks.

In a medium bowl, mix the apples, brown sugar, lemon juice, and cinnamon. Set aside.

In a large skillet, melt the butter over medium heat. Add the apples and cook, stirring frequently for about 10 minutes or until the apples are tender and the liquid starts to bubble.

Add the cornstarch and stir until the mixture thickens. Remove from heat and allow to cool while making the cupcakes.

Preheat the oven to 350°F and prepare a 12-cavity cupcake pan with liners. Set aside.

In a large mixing bowl, add the flour, sugar, baking powder, nutmeg, and cinnamon. Whisk until combined.

Add the milk, vegetable oil, vanilla extract, eggs, and water. Beat until well combined. The batter will be thin.

Fill the liners about ⅔ way and bake for 17-20 minutes. Remove cupcakes from the oven and transfer to a cooling rack.

In a large mixing bowl, beat the butter until pale in color, about 2-3 minutes. Add the cinnamon and vanilla extract. Mix until combined.

Add the powdered sugar and mix until completely combined. Transfer to a piping bag.

To assemble, use a knife or cupcake corer to make a hole in the center of each cupcake.

Fill each cupcake with the apple filling. Pipe the buttercream onto each cupcake and place the rest of the apple filling on top. Drizzle with caramel sauce. If desired, sprinkle with a pinch of cinnamon.