Preheat oven to 350°F. Line a 12-cup muffin tin with paper liners.
Whisk dry ingredients: In a medium bowl, combine flour, baking powder, salt, 1 teaspoon cinnamon, nutmeg, and cloves. Set aside.
Cream butter and sugar: In a large mixer bowl, beat 1/2 cup softened butter and granulated sugar on medium speed until light and fluffy, about 3 minutes.
Add eggs and vanilla: Beat in eggs one at a time, mixing well after each addition. Add 1 teaspoon vanilla extract and mix until combined.
Alternate dry and wet: Add flour mixture and milk alternately, beginning and ending with flour. Mix on low speed until just combined. Do not overmix.
Prepare apple filling: In a small saucepan, combine 1/4 cup diced apples, brown sugar, cornstarch, and lemon juice. Cook over medium heat, stirring constantly, until thickened (about 3-4 minutes). Remove from heat and cool completely.
Fold in remaining apples: Gently fold the remaining diced apples into the batter.
Fill cupcake liners: Spoon batter into prepared liners, filling halfway. Add 1 teaspoon of cooled apple filling to the center of each cupcake. Top with more batter to cover the filling.
Bake: Bake for 18-20 minutes, or until a toothpick inserted into the center comes out clean. Cool in pan for 5 minutes, then transfer to a wire rack to cool completely.
Make frosting: Beat 1/2 cup softened butter until creamy. Gradually add powdered sugar, 2 tablespoons cream, 1 teaspoon vanilla, and 1 teaspoon cinnamon. Whip on medium-high speed for 3 minutes until fluffy. Add more cream if needed for piping consistency.
Frost and serve: Pipe or spread frosting onto completely cooled cupcakes. Dust with additional cinnamon if desired. Store in an airtight container.