In a large bowl, combine the flour, baking powder, salt, and cinnamon.
In another bowl, whisk together the milk, melted Challenge Unsalted Butter, sugar, egg, and vanilla extract until smooth.
Gradually add the wet ingredients to the dry ingredients, mixing until just combined. Fold in the diced apples.
Heat oil in a deep pan or fryer to 350°F. Carefully drop spoonfuls of the batter into the hot oil, frying a few at a time until golden brown on both sides, about 3-4 minutes. Remove with a slotted spoon and drain on paper towels.
In a small shallow dish, mix together the granulated sugar and cinnamon. Toss the hot fritters in the cinnamon sugar to coat them evenly.
In a small saucepan, melt the Challenge Unsalted Butter over medium heat.
Add the brown sugar, stirring until it dissolves. Slowly whisk in the heavy cream and bring to a simmer, cooking for 2-3 minutes until smooth. Stir in the vanilla extract and a pinch of salt.
Serve the warm apple fritters with the creamy butter caramel dipping sauce on the side for drizzling or dipping.
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