Sweetened crème fraîche or whipped cream(optional)
In a medium bowl, whisk together flour, baking powder, cinnamon, salt and nutmeg. Using a pastry blender or fingers, cut butter into flour mixture until it resembles fine crumbs. In another bowl, whisk together apple, egg and milk. Add apple mixture to flour mixture and stir until combined (mixture will be dry). Turn out dough onto work surface and knead a few times until it just holds together. Do not over-knead. Divide into 8 pieces; roll into balls.
In a 4-qt saucepan, combine cider and sugar. Bring to a boil over medium-high heat. Reduce to a simmer and add 4 dough balls. Cook, turning occasionally, until dumplings are almost tripled in size and golden brown, 10 to 12 min. Using a slotted spoon, transfer to a plate and cover loosely with foil. Repeat with remaining 4 dough balls.
Bring cider to a boil and cook until reduced to the consistency of maple syrup, about 5 min.
Serve dumplings warm, drizzled with cider and crème fraîche, if desired.
Simmer these dumplings slowly so the center gets done but they don't fall apart. No rolling boils here!