Preheat your oven to 350°F (175°C) and grease a 9-inch round cake pan.

In a large mixing bowl, whisk together the softened butter and granulated sugar until light and fluffy (about 2-3 minutes).

Incorporate the eggs one at a time, mixing well after each addition. Add the vanilla extract and combine.

In another bowl, sift together the flour, baking powder, baking soda, and salt. Gradually add the dry mixture to the wet mixture, stirring until just combined.

Gently fold in the chopped apples and cinnamon.

In a separate bowl, mix the softened cream cheese with a tablespoon of sugar until smooth.

Pour half of the apple batter into the prepared cake pan.

Spoon the cream cheese mixture over the batter, spreading it out. Top with the remaining apple batter.

Bake in the preheated oven for 40-45 minutes, or until a toothpick inserted comes out clean.

Let the cake cool in the pan for 10 minutes before transferring to a cooling rack.

Once cooled, slice it up and serve.