1. Preheat oven to 350 degrees F. Grease a 12-cup tube or bundt pan with Pam.
2. Combine cinnamon and sugar and set aside 1 tablespoon. Toss prepared apples with remainder and set aside.
3. For the cake; whisk together sugar, applesauce, vanilla, oil, salt, and eggs.
4. Combine flour, baking powder, and nutmeg and fold into sugar mixture.
5. Spoon a little more than one third of the batter into prepared pan. Cover with half of apple mixture, then spoon in remaining batter and apple slices. Sprinkle top lightly with the reserved cinnamon-sugar.
6. Bake in preheated oven for 1 hour or until done. Loosen sides with a butter knife, then invert cake onto a plate for serving.