Peel and dice apples. Place in a bowl, and toss with cinnamon sugar, Mix and set to the side.
In a large bowl, combine flour, sugar, baking powder, baking soda, and salt. Then add in the buttermilk, milk, cinnamon, nutmeg, clove, vanilla extract, eggs, and 3 tablespoons cooled melted butter. Mix for 30 seconds and all ingredients are blended.
Mix in 1 cup of the apple cinnamon diced apples into the batter.
Heat a small frying pan with 1 tablespoon butter. Melt, and add in the remaining apples. Cook on medium-high heat, stirring often until golden in color and soft.
Heat a lightly oiled griddle or frying pan over medium heat.
Pour the batter onto the griddle, using about ¼ cup for each pancake (or less if you want silver dollar pancakes).
Brown on both sides. Remove from griddle and repeat until all the batter is used. Top pancakes with warm fried apples, whipped cream, and top with caramel sauce.