Preheat your oven to 350°F (175°C).

In a large mixing bowl, beat together the softened butter, cream cheese, granulated sugar, and brown sugar until light and fluffy.

Add the eggs one at a time, fully incorporating each before adding the next. Mix in the vanilla extract.

In a separate bowl, whisk together the flour, baking powder, baking soda, cinnamon, nutmeg, and salt.

Gradually add the dry mixture to the wet ingredients, mixing just until combined.

Fold in the diced apples and chopped nuts (if using).

Drop mounds of dough onto a parchment-lined baking sheet, leaving space for spreading.

Bake for 12-15 minutes or until the edges are lightly golden.