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Whisk together flour, sugar, baking powder, salt, and cinnamon in medium bowl. Make a well in the center and add 1/3 cup milk, eggs and applesauce. Stir just to combine. Fold in apples.
Heat 1 1/2 inches of oil in heavy skillet, dutch oven or deep fryer to 375 degrees. Drop about 1/4 cup of batter per fritter into hot oil; spreading it out as you drop. Cook each side until golden brown; approximately 2 minutes per side. Remove to paper towels to drain.
Whisk together 1/4 cup milk, powdered sugar and vanilla. Dunk each fritters in the glaze turning over to make sure both sides coated. Place on wire racks to air dry and drip.