Apple Fritters with Cider Sauce

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For fritters:

1 cup Stayman Winesap apples, peeled and cubed

2 cups apple cider

1 cup all-purpose flour

1/2 teaspoon salt

2 teaspoons baking powder

1 tablespoon plus 1 teaspoon sugar

1 large egg, beaten

2/3 cup milk, room temperature

3 tablespoons unsalted butter, melted and cooled

6 cups lard or vegetable oil

Garnish:

Powdered sugar and cinnamon

For Cider Sauce:

2/3 cup sugar

1/4 teaspoon freshly grated nutmeg

2 teaspoons cornstarch

1/4 teaspoon salt

3/4 cup hard cider

1/4 cup water

1 bay leaf

1 (2-inch) strip lemon peel

1/4 cup bourbon