Preheat the oven to 350°F (180°C). Grease and flour a Bundt pan.
In a large bowl, cream together the butter, granulated sugar, and vanilla sugar until light and fluffy. Beat in the eggs one at a time, mixing well after each addition.
In a separate bowl, whisk together the flour, baking powder, cinnamon, and salt.
Gradually add the dry ingredients to the wet ingredients, alternating with the milk. Begin and end with the dry ingredients.
Gently fold in the grated apples and ground walnuts until just combined.
Pour the batter into the prepared Bundt pan and spread evenly.
Bake for approximately 45 minutes, or until golden brown and a toothpick inserted into the center comes out clean.
Remove from the oven and let cool in the pan for 10 minutes before inverting onto a wire rack to cool completely.
Dust the cooled Bundt cake with powdered sugar and slice to serve.
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