Sift together flour, baking powder, milk, salt, sugar, nutmeg, and cinnamon into mixer bowl.
Combine eggs, water, shortening or salad oil, and add to dry ingredients. Mix at low speed until well blended.
Drain apples and chop apples coarsely; add to batter; mix lightly.
Using a well-rounded tablespoon, drop batter into deep fat. Fry 4 to 6 minutes. Drain on absorbent paper. Sprinkle with sifted powdered sugar.