Preheat the oven to 350°F (177°C). Thoroughly grease and flour a Bundt pan, making sure to coat all the grooves and crevices. I like to use baking spray with flour because it makes this step especially easy. Peel the Granny Smith apples and dice them into small ¼-inch pieces.
In the bowl of a stand mixer fitted with the paddle attachment, add the room-temperature butter, granulated sugar, and light brown sugar. Cream together on medium speed until the mixture is light and fluffy, scraping down the sides of the bowl as needed. You can also use a hand mixer if you do not have a stand mixer.
Add the room-temperature eggs one at a time, mixing well after each addition. Add the applesauce, sour cream, and vanilla extract, then mix until everything is just combined.
In a separate large bowl, whisk together the cake flour, baking powder, salt, cinnamon, nutmeg, and pumpkin spice. Gradually add the dry ingredients to the wet ingredients and mix just until combined. Avoid overmixing the cake batter, which can affect the tender texture of the finished cake.
Melt the butter in a small saucepan over medium heat. Add the diced apples, granulated sugar, cinnamon, and lemon juice. Sauté for 1-2 minutes, just until the apples begin to soften and become fragrant. Remove from the heat, then gently fold the apple mixture into the cake batter with a rubber spatula.v
In a small bowl, combine the brown sugar and chopped walnuts. Sprinkle the mixture evenly over the bottom of the prepared Bundt pan. Carefully spoon or pour the apple cake batter over the walnut mixture and spread the top into an even layer.
Bake for 55-65 minutes, or until the center of the cake reaches an internal temperature of 200-210°F (93-99°C). Transfer the pan to a wire rack and let the cake cool in the pan for 10 minutes. Run a thin knife or offset spatula carefully around the edges, then invert the cake onto the wire rack and allow it to cool completely.
(Optional): For the optional caramel glaze, melt the butter in a thick-bottomed medium saucepan over medium heat. Stir in the brown sugar and continue stirring until dissolved, then bring the mixture to a boil for 1 minute. Remove from the heat and carefully stir in the heavy whipping cream, vanilla extract, and salt. Allow the glaze to cool and thicken before drizzling it over the cooled cake. Let the glaze set before slicing and serving. Enjoy!