Preheat oven to 350 degrees. Lightly spray a 9" round spring form pan with non-stick baking spray. Set prepared pan aside.
In separate bowls combine the wet and dry ingredients. Dry ingredients; flour, baking powder and salt, combine with a whisk. Wet ingredients; sugar, sour cream, oil, egg and vanilla, mixing together with a whisk. Gradually add the dry ingredients to the wet ingredients with a whisk, mixing together until completely smooth. Batter will be thick.
Pour batter into the prepared pan, smoothing the batter evenly into the bottom of the pan.
In another bowl, add the peeled and diced apples, sugars and cinnamon. Stir together to coat evenly. Add the coated apples to the top of the cake batter in the pan, making sure the apples are evenly distributed over the top of the batter.
Bake the cake for 55-60 minutes at 350 degrees, or until toothpick inserted into the center of the cake comes out clean and crumb-free.
Let cake cool completely before dusting with powdered sugar.