In a small bowl, combine flour and baking powder. Set aside for later.
In a large bowl, cream together butter, sugar, eggs, vanilla, and cinnamon.
Fold in apples.
Mix dry ingredients into wet ingredients a little at a time until combined well. The mixture will be thick.
Grease 6 cup bundt pan and spread mixture thoroughly.
Cover with foil tightly.
In 6qt or bigger Instant Pot, pour 1 cup water and insert trivet.
Place bundt pan on top of trivet.
Lock lid and set vent to sealing.
Press manual button, high pressure, for 70 minutes.
When Instant Pot beeps, quick pressure release.
Remove trivet and bundt pan carefully.
Remove foil, place dish on top of bundt pan and flip it over to remove cake.
In a microwave safe bowl, pour in 1 tbsp water and caramel bits.
Microwave for 30-50 seconds, stirring every 10-15 seconds until caramel is melted completely.
Drizzle over cake, slice, and serve.