Preheat oven to 350°F. Line a muffin pan with liners and set aside.
In a small skillet combine your diced apples, sugar and butter. Cook over medium heat until tender, about 8 minutes. Set aside.
In a large mixing bowl mix the cake mix, water, vegetable oil and 3 eggs until combined.
In a smaller mixing bowl whisk the cream cheese, egg and sugar until smooth.
Place a spoonful of the muffin batter in the liners, filling them about ¼ of the way up.
Next spoon in a dollop of the cream cheese mixture to make it about ½ full.
Next top with more batter so your tins are about ¾ full.
Swirl the cream cheese into the batter a little. Top each cupcake with a spoonful of the apples.
Bake for 20-25 minutes, until a toothpick comes out clean. Let cool 5 minutes, then transfer muffins to a cooling rack.
Before serving, drizzle muffins with caramel sauce. Enjoy!