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Preheat oven to 350.
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Line baking sheets with parchment paper or a silicone mat.
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Whisk together flour, baking powder, baking soda, salt, cinnamon and nutmeg.
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Stir oats into flour mixture and set aside.
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Cream together butter, brown sugar and sugar.
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Add in egg, apple sauce and vanilla and beat until blended.
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Gradually add in the flour mixture, stirring by hand, until incorporated.
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Fold in the diced apples.
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Spoon into 1 tablespoon balls and place on prepared sheets 2" apart.
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Bake for 18-20 minutes or until the edges are lightly browned.