Pre-heat oven to 350° F. Line a 9-inch cake pan with parchment paper and set aside.
In a medium bowl, whisk together flour, baking powder, salt, and cinnamon. Set aside.
In a stand mixer or large bowl and hand mixer, cream the butter, applesauce, and sugar will smooth fluffy. Add the apple sauce and the vanilla. Slowly add the eggs one by one.
Place caramels in a microwave safe bowl. Add milk and melt caramel in microwave. Arrange apples in the baking pan. Pour caramel evenly over the apples.
Add the cake on top of the caramel and apples. Smooth with a spatula.
Bake for 35-40 minutes.
Allow cake to to cool. Place a plate on top of the cake and flip to allow the cake to release from the pan. Enjoy!