Step 1: Preheat your oven to 350°F (175°C).
Step 2: Line a muffin tin with parchment liners.
Step 3: In a large mixing bowl, whisk together the all-purpose flour, light brown sugar, baking powder, and cinnamon.
Step 4: In another bowl, mix the whole milk, vegetable oil, unsweetened applesauce, caramel sauce, eggs, and pure vanilla extract until smooth.
Step 5: Gradually add the wet ingredients to the dry ingredients, stirring gently.
Step 6: Gently fold in the shredded Granny Smith apple.
Step 7: Scoop the batter into the prepared muffin tin, filling each liner about two-thirds full.
Step 8: Bake for 18-20 minutes, or until a toothpick comes out clean.
Step 9: Let the cupcakes cool in the tin for 5 minutes, then transfer to a cooling rack.
Step 10: Beat the softened butter until creamy, then add powdered sugar and mix. Add caramel sauce and kosher salt, and beat until fluffy.
Step 11: Frost the cooled cupcakes generously with the caramel frosting.
Step 12: Optionally, drizzle additional caramel sauce over the frosted cupcakes and garnish.