Preheat oven to 350. Beat 1-1/2 cups sugar, butter, vanilla, and cream cheese at medium speed of a mixer until well-blended (about 4 minutes).
Add eggs, 1 at a time, beating well after each addition. Combine flour, baking powder, and salt.
Add flour mixture to creamed mixture, beating at low speed until blended.
In a small bowl combine 1/4 cup sugar and cinnamon.
Place the apples in a bowl and add 2 tablespoons of the cinnamon mixture to the apple in a bowl.
Mix to coat and then stir the apple mixture into the batter.
Pour the batter into an 8-inch spring form pan coated with cooking spray, and sprinkle with remaining cinnamon mixture.
Bake for 1 hour and 15 minutes or until the cake pulls away from the sides of the pan.
Cool the cake completely before trying to cut.
It's best to use a serrated knife and a sawing motion when cutting this cake Serves 10 to 12.
