Preheat oven to 350 degrees. Grease a 9x5" loaf pan.
Combine brown sugar and cinnamon in a small bowl. Set aside.
Peel and dice two apples. Sprinkle with sugar, nutmeg, and cinnamon. Set aside.
Combine flour, sugar, baking powder, and salt in a mixing bowl. Add eggs, oil, and milk. Mix until a smooth batter forms.
Grease a 9x5" loaf pan. Spoon ½ of the batter into the pan. Top with ½ of the diced apples and ½ of the brown sugar mixture.
Repeat this process with the remaining batter, diced apples, and brown sugar mixture.
Bake at 350 degrees for 60 minutes, tenting the loaf with foil after 45 minutes to prevent the top from getting too brown. Let bread cool for 15 minutes, then remove from pan and cool completely on a wire cooling rack.
Combine powdered sugar and milk in a bowl until smooth and creamy.
Drizzle glaze over the cooled loaf.
Video
Notes
Apple fritter bread is best eaten within 3 days. Cover the loaf with plastic or place it in a bag to keep it fresh.