Step 1: Prepare the Apple Filling. In a medium skillet, melt the butter over medium heat. Add the diced apples, cinnamon, nutmeg, and brown sugar. Cook for 5-7 minutes, stirring occasionally, until the apples are tender but still hold their shape. Remove from heat and set aside to cool slightly.
Step 2: Prepare the Cheesecake Filling. In a mixing bowl, combine the softened cream cheese, granulated sugar, and vanilla extract. Beat with an electric mixer until smooth and creamy. Do not overmix.
Step 3: Assemble the Tacos. Lay out a flour tortilla. Spread about 1-2 tablespoons of the cream cheese filling over one half of the tortilla, leaving a small border. Top the cream cheese with about 1-2 tablespoons of the cooked apple mixture. Fold the other half of the tortilla over to create a taco shape, gently pressing down.
Step 4: Repeat with remaining tortillas and fillings. You should have 8 assembled tacos.
Step 5: Fry the Tacos. Heat 2-3 cups of vegetable or canola oil in a large skillet or shallow pot over medium-high heat until it reaches 350°F (175°C). Carefully place 2-3 tacos into the hot oil, ensuring not to overcrowd the pan. Fry for 2-3 minutes per side, or until golden brown and crispy.
Step 6: Drain and Finish. Remove the fried tacos from the oil and place them on a plate lined with paper towels to drain excess oil. Immediately dust with powdered sugar, if desired, and serve warm with a drizzle of caramel sauce, if using.