In a large bowl, combine the flour, sugar, baking powder, cinnamon and salt. In another bowl, whisk the egg, milk, butter and vanilla. Stir into dry ingredients just until moistened. Fold in apple and caramels.
Fill 12 paper-lined muffin cups three-fourths full. Combine topping ingredients; sprinkle over batter.
Bake at 350° until a toothpick inserted in the cake portion comes out clean, 20-25 minutes. Cool for 5 minutes before removing from pan to a wire rack. Serve warm.