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HEAT oven to 350ºF.
BEAT first 5 ingredients in large bowl with mixer until well blended. Stir in apples. Pour into greased and floured 12-cup fluted tube pan or 10-inch tube pan.
BAKE 50 min. to 1 hour or until toothpick inserted near center comes out clean. Cool cake in pan 15 min. Loosen cake from side of pan; invert onto wire rack. Gently remove pan. Cool cake completely. Transfer to plate.
MICROWAVE caramels and milk in microwaveable bowl on HIGH 1-1/2 min. or until caramels are completely melted and sauce is smooth, stirring every 30 sec. Cool 10 min. or until slightly thickened. Drizzle over cake.