Step 1: Preheat oven to 350 degrees F (set oven rack to second-lowest position).
Step 2: Grease a 9-inch baking pan.
Step 3: In a medium bowl beat 1 1/2 cups sugar with cream cheese, butter, and vanilla at medium speed of a mixer until well-blended (about 4 minutes).
Step 4: Add eggs one at a time beating well after each addition; set aside.
Step 5: In a small bowl combine the flour with baking powder, and salt; add to the creamed mixture beating at low speed until blended.
Step 6: Combine 1/4 cup sugar and cinnamon.
Step 7: Toss 2 tablespoons of the cinnamon mixture with the chopped apples in a bowl; stir apple mixture into batter.
Step 8: Pour batter into the pan then sprinkle with remaining cinnamon mixture.
Step 9: Bake for 1 hour and 5-10 minutes or until cake pulls away from the sides of pan.
Step 10: Cool cake completely.
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