Combine your apple slices, 1 tsp cinnamon and 2 TBSPs granulated white sugar in a large sauce pan over medium low heat. Cook the apples, stirring regularly until they are soft, about 10 minutes.
While the apples are cooking down, combine 1 cup brown sugar, 1/2 cup (one stick) unsalted butter, 1/4 cup heavy cream in a small sauce pan over medium heat. Stir consistently until the mixture begins to boil. Continue stirring for another minute or so until it is smooth, remove from the heat.
Pour the 1/2 cup melted butter into the baking dish.
In a large bowl, whisk together 1 cup sugar, 1 cup flour, 2 tsps baking powder, and 1/4 tsp salt. Whisk in 1 cup milk and 2 tsps vanilla extract. Pour the mixture over the butter and whisk in gently.
Add 1 cup of the caramel sauce to the apples and stir to combine, reserve the rest for serving (I had about 1/3 cup left). Pour the caramel apple mixture over the batter. Bake for 20 to 25 minutes or until the edges are golden brown. Serve warm with ice cream and the reserved caramel sauce.