Practically foolproof apple cake

I first tasted this in the office -- one of my colleagues has an apple tree in her backyard and she probably has an arsenal of great apple recipes. This is among them. I love this cake.

It reminds me of bread pudding -- moist and dense, but made with apples. A confused bread pudding and apple pie? Of course I asked for the recipe (see it after the jump!). I've baked it twice now and both times it turned out great.
We've enjoyed this as a snack with tea/coffee, for breakfast (with fruit and yoghurt), and it would definitely work as a dessert (served with some ice-cream ala apple ala mode).

I used crabapples. The apples were free -- my colleague brought in two bags full -- and I bought home the spoils and turned them into this marvellous cake. Whether you're a beginning baker or an advanced one, make this cake and enjoy!

Cinnamon Apple Cake (Modified slightly from MyRecipes.com)

Ingredients:
1 3/4 cups sugar, divided
1/2 cup butter, softened
1 teaspoon vanilla extract
6 ounces block-style cream cheese, softened (about 3/4 cup)
2 large eggs
1 1/2 cups all-purpose flour (I sifted before measuring)
1 1/2 teaspoons baking powder
1/4 teaspoon salt
2 teaspoons ground cinnamon
3 cups chopped and peeled apple (about 2 large)

Preparation:

1. Preheat oven to 350°. 
2. Beat 1 1/2 cups sugar, margarine, vanilla, and cream cheese at medium speed of a mixer until well-blended (about 4 minutes). Add eggs, 1 at a time, beating well after each addition. 
3. Combine flour, baking powder, and salt. Add flour mixture to creamed mixture, beating at low speed until blended. 
4. Combine 1/4 cup sugar and cinnamon. Combine this cinnamon mixture with the apples in a bowl, and stir apple mixture into batter. Pour batter into an 8-inch springform pan coated with cooking spray, and sprinkle with remaining cinnamon mixture. 
5. Bake at 350° for 1 hour and 15 minutes or until the cake pulls away from the sides of the pan. Cool the cake completely on a wire rack, and cut using a serrated knife. 

Note: You can also make this cake in a 9-inch square cake pan or a 9-inch springform pan; just reduce the cooking time by 5 minutes.