preheat oven to 350 degrees. Beat 1 1/2 cups sugar, margarine, vanilla, and cream cheese at medium speed of a mixer until well-blended (about 4 minutes). Add eggs, 1 at a time, beating well after each addition. Combine flour, baking powder, and salt. Add flour mixture to creamed mixture, beating at low speed until blended.
Combine 1/4 cup sugar and cinnamon. Combine 2 tablespoons cinnamon mixture and apple in a bowl, and stir apple mixture into batter. Pour batter into an 8-inch springform pan coated with cooking spray, and sprinkle with remaining cinnamon mixture.
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