Pre-heat the oven to 350°F and prepare an 8-inch round cake pan by spraying with non-stick spray.
In a large bowl, use the paddle attachment, at medium-high speed, to cream together the butter and sugar until light and fluffy; about 2 minutes .
Add the vanilla, milk and eggs and mix until fully combined; scrape down the sides.
In a medium bowl, sift together the flour, baking powder, cinnamon and salt.
Add the dry ingredients to the wet and mix until just barely fully combined.
Add the chopped apples to the batter and fold in by hand until evenly distributed throughout; this is an apple-heavy recipe, so should be about 50/50 apples to the batter.
Pour the batter into the prepared cake pan and spread until smooth.
Top with the streusel topping, place in the pre-heated oven and bake for 45 -50 minutes, or until the streusel is lightly golden brown and a toothpick comes out clean from the center of the cake.
Remove from the oven and allow to cool at least 15 minutes before serving with warm custard sauce.