Preheat oven to 350 and either spray cupcake pan or line with muffin cups.
Combine flour, baking powder, and vanilla pudding mix.
In separate bowl, whisk together pumpkin, oil, eggs, pumpkin pie spice, 1 1/4 cups of sugar, baking soda, salt, 1 teaspoon of cinnamon and milk until smooth. Whisk in flour mixture and apples until combined.
Stir together remaining cinnamon and sugar.
Divide batter among muffin cups, then sprinkle tops with cinnamon sugar mixture. Bake until puffed and golden brown and toothpick inserted in center comes out clean. 25-30 minutes.
Cool on rack for 5 minutes, then transfer muffins from pan to cool.