01 -  Preheat oven to 350°F. Grease and line an 8-inch square cake pan with parchment. 
 02 -  In a bowl, whisk together flour, baking powder, baking soda, cinnamon, nutmeg, and salt. 
 03 -  Beat butter and sugar with an electric mixer until pale and fluffy. Add eggs one at a time. Mix in vanilla extract. 
 04 -  Fold in grated apple. Add dry ingredients in three additions, alternating with milk, until just combined. 
 05 -  Transfer batter to prepared pan and bake for 30–35 minutes until a toothpick inserted in the center comes out clean. Let cake cool completely in the pan. 
 06 -  Crumble cooled cake into a large bowl. Add caramel sauce and softened cream cheese. Mix until well-combined and dough-like. 
 07 -  Scoop about 1 1/2 tablespoons of mixture and roll into balls. Place on a parchment-lined tray. Insert lollipop sticks. Freeze balls for 30 minutes. 
 08 -  Melt candy melts in a microwave-safe bowl according to package instructions, adding vegetable oil if needed for a smooth consistency. 
 09 -  Dip chilled cake balls in melted candy coating, letting excess drip off. Decorate immediately with candy eyes, sprinkles, and colored candies to create monster faces. 
 10 -  Stand cake pops upright in a styrofoam block or cake pop stand to set for about 30 minutes. Drizzle with extra caramel sauce if desired.