Create the streusel, or crumb topping by combining the butter, brown sugar, flour, cinnamon, and nutmeg. Set aside.
⅔ cup flour, ½ cup brown sugar, 1 teaspoon cinnamon, ⅛ teaspoon nutmeg, 4 tablespoons butter
Filling
Peel, core, and dice the apples into small ½ cubes. Toss with brown sugar, flour, cinnamon, and nutmeg. Set aside.
1 ½ cups diced apples, ¼ cup brown sugar, 1 tablespoon flour, 1 teaspoon cinnamon, ⅛ teaspoon nutmeg
Coffee Cake
Make the cake batter by combining the milk, melted butter, sugar, egg, and vanilla in a large bowl.
½ cup milk, ⅓ cup butter, 1 egg, 2 teaspoons vanilla, ¾ cup granulated sugar
Add flour on top of the batter and then sprinkle with baking powder, salt, and cinnamon.
2 cups flour, 2 teaspoons baking powder, ½ teaspoon salt, ½ teaspoon cinnamon
Begin mixing the baking powder, salt, and cinnamon into the flour first, and then mix everything into the batter. Stir just until combined.
Place half of the cake batter in a lightly greased 8x8-inch baking dish. Spread batter as evenly as possible. The batter layer will be fairly thin. Use a spatula to gently spread it all the way to the edges of the pan before adding the apples.
Add prepared apples evenly over the batter. Add the remaining cake batter and spread it as evenly as possible.
Crumble the streusel topping over the top. I use my hands to crumble the topping over the cake.
Bake in a preheated 350°F oven for 40-50 minutes.
Cool before serving.
Notes
Don't overmix the cake batter. Stir just until everything comes together.
Add the crumble topping with your fingers. Crumble the topping between your fingers, creating uneven bits.
Check to see if the cake is done by inserting a toothpick in the center of the cake. If it comes out clean, or has a few crumbs, the cake is done.
Cool before slicing. This helps the cake set and helps hold the cake together.