Prepare the apples:
In a large saucepan, combine the chopped apples, sugar, and cinnamon over medium-low heat. Stir and cook until the apples become tender. If the mixture is too juicy, sprinkle 1-2 tablespoons of flour over the apples and stir to thicken.
Cool the apples:
Once the apples are cooked and thickened, remove from heat and let them cool to room temperature.
Make the filling:
In a large bowl, whisk together the vanilla pudding and milk until smooth. Stir in the sour cream and Cool Whip until fully combined.
Assemble the cake (Layer 1):
Line the bottom of a 9×13 baking dish with 7 cinnamon graham crackers.
Add apples & filling:
Spread half of the apple mixture over the graham crackers. Then spoon half of the pudding mixture over the apples.
Assemble the cake (Layer 2):
Add another layer of graham crackers over the pudding. Spread the remaining apples over the graham crackers, followed by the remaining pudding mixture.
Final layer:
Place one last layer of graham crackers on top of the pudding.
Spread caramel:
Heat the caramel dip in the microwave for 30 seconds, stir, then heat for an additional 20-30 seconds until it’s softened (not fully melted). Spread the softened caramel evenly over the top layer of graham crackers.
Chill the cake:
Refrigerate the cake for at least 8 hours or overnight to let the flavors meld together.