Preheat the oven to 350°F (175°C). Lightly coat a standard loaf pan with nonstick cooking spray or line it with parchment paper.
In a small bowl, combine 1/2 cup brown sugar with 1 tablespoon cinnamon. Set aside.
In a separate bowl, whisk together the flour, baking powder, and salt.
Place the diced apples in another bowl. Add 1 tablespoon cinnamon, cloves, nutmeg, and 1/2 cup brown sugar. Toss until the apples are evenly coated.
In the bowl of a stand mixer fitted with the paddle attachment, beat the softened butter and granulated sugar until pale, light, and creamy.
Add the eggs one at a time, mixing well after each addition. Mix in the alcohol-free vanilla.
Add the dry ingredients to the butter mixture in batches, alternating with the milk. Gently mix by hand just until combined to avoid overworking the batter.
Spread half of the batter evenly into the prepared loaf pan.
Spoon half of the spiced apple filling over the batter, followed by half of the cinnamon-brown sugar mixture.
Carefully spread the remaining batter over the apples. Finish with the remaining apple filling and cinnamon-brown sugar mixture.
Bake the Apple Fritter Bread Recipe for approximately 55–65 minutes, or until a toothpick inserted into the center comes out with only a few moist crumbs and no wet batter.
Allow the loaf to cool in the pan for about 15 minutes before transferring it to a wire rack. Cool further before slicing.