Preheat your oven to 350°F (175°C) and grease a 9x5-inch loaf pan.
In a bowl, whisk together the flour, baking powder, cinnamon, and salt. In a separate large bowl, mix milk, melted butter, sugar, eggs, and vanilla until smooth. Gradually add the dry ingredients, stirring until just combined.
Toss the diced apples with sugar and cinnamon in a small bowl. Mix them.
Pour half the batter into the prepared loaf pan. Spread half the apple mixture over the batter. Add the remaining batter, then top with the remaining apples. Lightly press the apples into the batter.
Bake for 50-60 minutes, or until a toothpick inserted in the center comes out clean. Let the bread cool in the pan for 10 minutes, then transfer to a wire rack to cool completely.
In a small bowl, whisk together powdered sugar, milk, and vanilla. Drizzle the glaze over the cooled bread.
Slice and enjoy your delicious Apple Fritter Bread as a dessert or breakfast treat!