In a medium skillet over medium heat, melt butter. Add diced apples, brown sugar, and cinnamon. Cook for 5–7 minutes until apples are softened but still slightly chunky. Stir in cornstarch mixed with water and cook until thickened. Remove from heat and let cool completely.

In a large mixing bowl, cream together softened butter, brown sugar, and granulated sugar until light and fluffy, about 2–3 minutes.

Add eggs and vanilla extract, mixing until smooth and fully combined.

In a separate bowl, whisk together flour, cornstarch, baking soda, baking powder, salt, and cinnamon.

Gradually add the dry ingredients to the wet ingredients, mixing just until a thick dough forms. Do not overmix.

Cover and chill the dough in the refrigerator for 30–45 minutes to ensure thick cookies.

Preheat oven to 350°F (175°C) and line a baking sheet with parchment paper.

Press a small amount of cooled apple filling into the center of each cookie and lightly fold the dough around it, keeping most of the filling inside without overstuffing.

In a small bowl, combine flour, brown sugar, and cinnamon for the crumble topping. Cut in cold butter until large crumbs form (pea to marble size). Gently press crumble onto the tops of each cookie.

Place cookies on the prepared baking sheet, spacing them apart to allow slight spreading.

Bake for 12–15 minutes, or until the edges are set and the centers remain soft. Do not overbake.

Allow cookies to cool on the baking sheet for 10–15 minutes before transferring.

In a mixing bowl, beat cream cheese and butter until smooth. Add powdered sugar and vanilla extract, mixing until creamy.

Spread a thin layer of frosting over each cooled cookie.

Drizzle caramel sauce lightly over the top in a zig-zag pattern before serving.