Preheat your oven to 375°F (190°C) and line a baking sheet with parchment paper.
In a large bowl, whisk together the flour, baking powder, cinnamon, salt, nutmeg, and granulated sugar until well combined.
In another bowl, mix the milk, applesauce, egg, and vanilla extract until smooth.
Pour the wet ingredients into the dry ingredients and stir until just combined. Be careful not to overmix.
Gently fold in the diced apples until evenly distributed throughout the batter.
Using a spoon or ice cream scoop, drop heaping tablespoons of the batter onto the prepared baking sheet, spacing them about 2 inches apart.
Bake in the preheated oven for 15-20 minutes, or until the fritters are golden brown and a toothpick inserted into the center comes out clean.
While the fritters are baking, prepare the glaze by whisking together the powdered sugar and milk in a small bowl until smooth. Adjust the consistency by adding more milk if needed.
Once the fritters are done, let them cool slightly on the baking sheet for about 5 minutes before transferring them to a wire rack. Drizzle the glaze over the warm fritters.