Preheat the oven to 350° F/175° C.

In the mixing bowl, beat 1-½ cups of the sugar, softened butter, vanilla, and softened cream cheese until well-blended, about 4 minutes. Add the eggs one at a time, beating well after each addition.

In the medium bowl, whisk together the flour, baking powder, and salt. Add the dry ingredients to the butter mixture, mixing at low speed until blended.

Stir the remaining ¼ cup of sugar with the cinnamon. Toss 2 tablespoons of the mixture with a the chopped apples, then stir the apples in the cake batter. Pour the batter into the prepared springform pan and sprinkle the remaining cinnamon sugar mixture on top.

Bake in the preheated oven until the cake is puffy and pulls away from the sides of the pan, about 1 hour and 15 minutes. Cool completely on a wire rack and remove from the pan. Serve with ice cream or whipped cream.