Preheat your oven to 350°F (175°C) and line a 12-cup muffin pan with cupcake liners.

In a medium bowl, whisk together flour, baking powder, baking soda, cinnamon, nutmeg, and salt until well combined. Set aside.

In a large bowl, cream the softened butter and granulated sugar together until light and fluffy, about 3-5 minutes.

Beat in the vanilla extract, then add the eggs one at a time, ensuring each one is fully incorporated before adding the next.

Gradually add the dry ingredients to the wet mixture, alternating with the milk. Start and finish with the dry ingredients, mixing until just combined.

In another bowl, toss the diced apples with brown sugar and lemon juice until evenly coated. Fold the apple mixture into the batter gently, being careful not to overmix.

Divide the batter evenly among the prepared cupcake liners, filling each about two-thirds full.

Bake in the preheated oven for 18-20 minutes or until a toothpick inserted in the center comes out clean. Allow to cool in the pan for about 5 minutes before transferring to a wire rack to cool completely.

Once the cupcakes have cooled, top each one with whipped cream or frosting, and drizzle with caramel sauce if desired.