Sift together flour, salt, baking powder and sugar. Make a well in the center of dry ingredients and beat in egg, milk and butter. Mix until homogeneous. Drain apples and gently fold into the batter. Set aside for up to 1 hour.
In a large saucepan, combine sugar, nutmeg, cornstarch and salt. Add remaining ingredients for cider sauce, except bourbon, and bring to a simmer. Simmer 10 minutes. Stir in bourbon. Remove from heat and set aside.
Heat lard or oil in a heavy 4 quart saucepan to 375 degrees. Drop fritter mixture into hot fat by the teaspoonful. Fry until golden and drain well. Dust with powdered sugar and cinnamon. Serve with cider sauce on the side.