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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 apples until just combined.
Using a rounded tablespoon, spoon dough onto ungreased baking sheets. Combine sugar and the remaining 1/2 teaspoon cinnamon. Sprinkle the cookies with the cinnamon-sugar mixture. Bake for 10 to 12 minutes or until edges are lightly browned. Transfer to a wire rack and let cool.