Preheat oven to 350 degrees.
Line a muffin pan with cupcake liners
Mix flour, sugars, baking soda, baking powder, cinnamon and nutmeg in a large mixing bowl.
Add eggs, vanilla extract, sour cream, applesauce and butter.
Mix on medium speed just until combined and smooth. Be careful not to over mix.
Stir in chopped apples
Fill cupcake liners 3/4 full.
Bake 17-19 minutes.
Allow to cool for 1-2 minutes, then move to cooling rack to finish cooling.
To make the buttercream, cream butter and shortening until smooth
Add 2 cups of powdered sugar and mix until creamy
Add caramel and mix again until creamy
Add remaining powdered sugar and mix one more time until smooth and cream
Pipe frosting onto cupcakes and a drizzle of caramel
ENJOY!