In a medium bowl, mix together the diced apples with 2 tablespoons of granulated sugar and set aside for about 10 minutes to allow the juices to release.
In another bowl, whisk together the flour, remaining sugar, baking powder, ground cinnamon, and salt.
In a separate bowl, combine the milk, egg, and vanilla extract, whisking until smooth.
Pour the wet ingredients into the dry ingredients and stir until just combined. Gently fold in the diced apples with their juices.
In a deep skillet or fryer, heat about 2 inches of vegetable oil over medium heat until it reaches 350°F (175°C).
Using a spoon or small ice cream scoop, drop spoonfuls of the batter into the hot oil, being careful not to overcrowd the pan. Fry until golden brown on each side, about 3-4 minutes.
Remove the fritters from the oil and allow them to drain on a paper towel-lined plate.
Once slightly cooled, dust the fritters with powdered sugar for serving.