Whisk the milk, water, butter and honey together in a measuring cup. Set aside.
In your stand mixer with dough hook attachment combine 3 ½ cups of the flour, the yeast and the salt. Turn mixer on low and slowly add the wet ingredients.
Once it comes together nicely increase the speed to a medium setting and let it knead the dough until it's smooth and elastic. You can add more flour as needed. I used all the flour. The dough should pull away nicely from the sides of the bowl when it's ready.
Turn off mixer and remove the hook. Place dough on a lightly floured surface and knead for a minute or two until it forms a ball.
Pop the dough in a well oiled bowl (I use non stick spray) and cover. Let stand in a warm area for about 1 ½ to 2 hours, it should double in size.
While it's doubling I suggest working on the caramel and grating the apples.
Once it doubles you want to pop it onto a cutting board.
Start dividing it into little balls.
Pop those balls in the apple sauce first, then dunk them in the sugar coating.
Now place them in a parchment lined tin. I used two bread tins and made two breads instead of one large one.
Line the bottom of each pan with some sugar coating.
Start layering your bread pieces into the pan.
Once you have one layer toss the apple mixture over top.
Now add another layer of bread pieces, after dunking them in applesauce and sugar coating like you did the first time.
If there's any sugar coating left dump it over top of the bread.
Cover the bread and let rise for another 1 to 2 hours, it should double in size.
Pop in a pre-heated 350 F oven for about 40 minutes.