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Preheat oven to 375°F. In a large bowl, combine flour, milk powder, baking soda, 1/4 teaspoon cinnamon and salt; set aside. In a medium bowl, whisk together yogurt, honey, applesauce and oil. Stir the applesauce mixture into the flour mixture all at once, stirring until just combined. Stir in the dried apples until just combined.
Drop dough by rounded tablespoons 2 inches apart onto an ungreased baking sheet. In a small bowl, combine sugar and the remaining 1/2 teaspoon cinnamon. Sprinkle lightly over dough.
Bake for 10 to 12 minutes or until edges are light brown. Transfer to a wire rack; cool completely. If desired, drizzle with honey just before serving.