Whisk together flour, sugar, baking powder, salt, and cinnamon in medium bowl. Make a well in the center and add milk, eggs and applesauce. Stir just to combine. Fold in apples.
Heat 1 1/2 inches of oil in heavy skillet, dutch oven or deep fryer to 375°. Drop about 1/4 cup of batter per fritter into hot oil; spreading it out as you drop. Cook each side until golden brown; approximately 2 minutes per side. Remove to paper towels to drain.
Whisk together milk, powdered sugar and vanilla. Dunk each fritters in the glaze turning over to make sure both sides coated. Place on wire racks to air dry and drip.