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, salt, cinnamon, nutmeg, and granulated sugar.

In a separate bowl, mix the milk, applesauce, egg, and vanilla extract until well combined.

Pour the wet ingredients into the dry ingredients and stir until just combined. Gently fold in the diced apples.

Using a spoon or cookie 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 with more milk if necessary.

Once the fritters are done, remove them from the oven and let them cool slightly before drizzling with the glaze.