In a large bowl, combine the flour, baking powder, baking soda, and cinnamon. Make a well in the center. In a small bowl, cream together the sugar and butter, then beat in the egg. Add the cider, milk, and vanilla to the creamed mixture.
Beat well until combined. Pour mixture into the center of the dry ingredients and stir until smooth. Peel, core, and finely chop the apple, then stir it into the batter. Cover and chill the dough for 1 hour. Place half the dough on a floured board; knead lightly, and roll out to about 3/8" thick. Cut with a floured 2 1/2" doughnut cutter.
Heat the oil to 375 degrees F in a skillet with high sides or a large pan. Fry the dough for 1-2 minutes on each side, until golden brown. Drain on paper towel. Cool slightly, then dust with confectioners' sugar or a mix of 1 cup sugar to 1 Tbsp. cinnamon.
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