Preheat oven to 350˚F. Lightly grease muffin tins.
In a small bowl, combine applesauce, water, egg, and honey.
In a large bowl, mix flour, oats, dry food, baking powder, and cinnamon.
Slowly add wet to dry ingredients, and stir in shredded apple. Using an electric mixer, mix on medium speed for about 1 minute.
Pour in lightly greased muffin tins almost to the top of the mold. Place in oven and bake for 30-35 minutes. To ensure the pupcakes are done, insert toothpick in center – if it comes out clean, they’re ready to come out.
Remove from oven and cool pupcakes on a wire rack.
Once the pupcakes are cool, frost with peanut butter.
For an added touch, sprinkle the top of the pupcakes with crushed peanuts or dry food!