2 cups peeled and finely diced Honeycrisp apples, divided

3/4 cup (185g) milk

1 tbsp apple cider vinegar

2 cups (265g) all-purpose flour or gluten-free baking flour

2 tsp ground cinnamon, divided

1 tsp baking soda

1/2 tsp kosher salt

1/2 cup (113g) + 1 tbsp unsalted butter, room temperature

1/2 cup (105g) + 1 tbsp light brown sugar, packed

1/2 cup (100g) granulated sugar

1/4 cup (62g) unsweetened applesauce

1 large egg

1 tsp vanilla extract

Demerara or raw sugar, for topping (optional)

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Preheat the oven to 350°F and grease a 9×5 loaf pan. Line the pan with parchment paper so it covers the bottom and the two long sides.
In a medium microwave-safe bowl, place 1 cup of diced apples. Add 1 tablespoon of butter to the apples and microwave for 30-60 seconds until the butter is melted. Stir in 1 tablespoon of brown sugar and 1 teaspoon of cinnamon. Set aside.
In a measuring cup, combine the milk and apple cider vinegar. Set aside.
In a medium bowl, whisk together the flour, 1 teaspoon of cinnamon, baking soda, and salt. Set aside.
In a large mixing bowl, beat together the remaining 1/2 cup of softened butter, 1/2 cup of brown sugar, and 1/2 cup of granulated sugar until smooth.
Add in the applesauce, egg, and vanilla extract, and mix until combined.
Gradually add half of the dry ingredients to the wet ingredients, mixing until just incorporated. Pour in the milk and vinegar mixture, stir to combine, and then add the remaining dry ingredients. Mix until just combined.
Fold in the remaining 1 cup of diced apples.
Pour the batter into the prepared loaf pan. If desired, sprinkle with Demerara or raw sugar for a crunchy topping.
Bake for 60-75 minutes or until a toothpick inserted into the center comes out clean. Let cool before serving.

Gluten-Free Option: Use a gluten-free baking flour blend.
Vegan Option: Use dairy-free butter, non-dairy milk, and an egg replacer like flax eggs.
Nutty Add-ins: Add 1/2 cup of chopped walnuts or pecans to the batter for extra flavor and crunch.
Dried Fruit: Add dried cranberries or raisins for a different twist on the apple flavor.
Storage: Keep leftovers in an airtight container at room temperature for up to 3 days, or refrigerate for up to a week.
Freezing: Wrap tightly and store in the freezer for up to 3 months.
Reheating: Microwave individual slices for 20-30 seconds, or wrap the loaf in foil and heat in the oven at 350°F for 10-15 minutes.