Preheat your oven to 375°F (190°C). Line two baking sheets with parchment paper or silicone baking mats. This prevents sticking and makes cleanup easier.
In a large mixing bowl, whisk together the flour, baking powder, baking soda, cinnamon, nutmeg, and salt. Whisking ensures the baking powder and soda are evenly distributed, leading to a better rise.
In a separate large mixing bowl, whisk together the sugar, applesauce, milk, eggs, and vanilla extract until well combined and smooth.
Gradually add the wet ingredients to the dry ingredients, mixing gently with a spatula or wooden spoon until just combined. Be careful not to overmix – a few streaks of flour are okay. Overmixing can lead to tough fritters.
Gently fold in the diced apples until they are evenly distributed throughout the batter.
Drop spoonfuls of batter (about ¼ cup per fritter) onto the prepared baking sheets, leaving some space between each fritter. They will spread slightly. You can use a cookie scoop for more uniform fritters, or just use a spoon.
Bake for 20-25 minutes, or until the fritters are golden brown and a toothpick inserted into the center comes out clean. Rotate the baking sheets halfway through baking to ensure even browning.
Let the baked fritters cool on the baking sheets for a few minutes before transferring them to a wire rack to cool completely. Cooling on a wire rack prevents the bottoms from getting soggy.
While the fritters are cooling, prepare the glaze. In a small bowl, whisk together the powdered sugar, milk, and vanilla extract until smooth. Add more milk, one teaspoon at a time, if needed to reach desired drizzling consistency.
Once the fritters are completely cool, drizzle generously with the glaze. Let the glaze set for a few minutes before serving. Enjoy these warm or at room temperature – they are delightful either way!