Preheat the oven to 350ºF (180ºC). Grease an 8-inch square baking dish. (I used a ceramic baking dish.*)
In a medium-size bowl, whisk together the flour, cinnamon, baking soda, salt and nutmeg until well combined.
In large bowl, beat the butter, granulated sugar and brown sugar together until light and fluffy. Beat in the egg until incorporated, then beat in the vanilla extract.
Stir in the flour mixture in 2 additions, followed by half of the sour cream after each addition. Mix just until combined. Do not over mix. Fold in the cooled, drained apples.
Transfer the batter to the baking dish. Smooth the top with a spatula. Bake until the cake is golden brown and springs back when lightly touched. A toothpick inserted into the center of the cake will be clean or have a few moist crumbs attached, about 23-28 minutes. Do not over bake.