Place flour, 2 cups sugar and next 7 ingredients in order given in large mixer bowl. Beat at medium speed until blended. Combine remaining 1/2 cup sugar and cinnamon in bowl. Add apples, tossing lightly. Place 3 layers batter and 2 layers apples alternately in greased 10 inch tube pan, beginning and ending with batter. Bake at 350 degrees F for 1 1/2 hours.
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