Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper or silicone baking mats.

In a medium bowl, whisk together the all-purpose flour, baking soda, salt, ground cinnamon, and ground nutmeg until well combined.

In a separate large bowl, beat the softened butter and brown sugar together using an electric mixer on medium speed until light and fluffy, about 2-3 minutes.

Add the egg and vanilla extract to the butter mixture, beating until fully incorporated, about 1 minute.

Pour in the milk and continue mixing until smooth.

Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined, being careful not to overmix.

Stir in the caramel chips and diced apples by hand using a spatula, ensuring even distribution throughout the dough.

Drop tablespoon-sized portions of the cookie dough onto the prepared baking sheets, spacing them about 2 inches apart.

Gently flatten each cookie dough mound with the back of a spoon.

Place the baking sheets in the preheated oven and bake for 10-12 minutes, or until the edges are golden brown and centers are set.

Remove from the oven and let cool on the baking sheets for 5 minutes before transferring to a wire rack to cool completely.