Preheat the oven to 350. Line 24 muffin tins with paper liners.

In a large bowl or stand mixer, beat the butter until smooth. Add in the sugar and beat until light and fluffy. Add the egg and mix. Scrape down the sides of the bowl as needed.

In a bowl, combine the flour, baking powder, salt, allspice, cinnamon, nutmeg, baking soda and cloves.

Add 1/3 of the flour mixture to the butter and sugar mixture. Mix until combined. Add half of the milk, mix, then 1/2 of the remaining flour, the remaining milk and then the remaining flour, beating in-between additions. Stir in the chopped apples.

Divide the mixture between the prepared cups, filling each about 2/3 full. Bake until the center springs back when touched, about 20-25 minutes. Allow to cool completely.

Spread about 1 teaspoon of the caramel topping on top of each cupcake.

Melt the butter in a saucepan over medium heat. Add the brown sugar and cook until dissolved, a few minutes. Stir in the cream. Remove from the heat and add in half of the powdered sugar. Beat until combined, then add the remaining powdered sugar. Add the vanilla then beat until smooth and shiny. Transfer to a piping bag and pipe the frosting on top of the caramel sauce.