Start by peeling and dicing your baking apples. In a bowl, mix the diced apples with 1 teaspoon of ground cinnamon and set aside.
In a large mixing bowl, cream together 10 tablespoons of unsalted butter and 1 cup of granulated sugar until light and fluffy. This should take about 3-4 minutes using a stand mixer.
Add 3 large eggs, one at a time, mixing well after each addition. Then stir in 1 teaspoon of pure vanilla extract.
In a separate bowl, whisk together 2 cups of all-purpose flour, 2 teaspoons of baking powder, 1 teaspoon of kosher salt, 1 teaspoon of ground nutmeg, and 1 tablespoon of ground cinnamon.
Gradually add the dry ingredients to the wet mixture, alternating with 1/4 cup of milk. Begin and end with the dry ingredients. Mix until just combined.
Gently fold in the spiced apple mixture and the cut-up caramels into the batter until evenly distributed.
In another bowl, beat the 8 ounces of cream cheese until smooth. Add 1 large egg, 1/2 cup of granulated sugar, 1 tablespoon of lemon zest, and mix until creamy and well combined.
Preheat your oven to 350°F (175°C). Grease your loaf pan with butter. Pour half of the apple batter into the bottom of the pan. Spread the cheesecake filling over the batter, then top with the remaining apple batter. For an extra crunch, sprinkle the top with 2 tablespoons of turbinado sugar.
Bake in the preheated oven for 50-60 minutes or until a toothpick inserted into the center comes out clean. If the top starts to brown too quickly, tent it with aluminum foil.
Allow the bread to cool in the pan for about 15 minutes before transferring it to a wire rack to cool completely. Slice and serve warm or at room temperature.