Preheat oven to 325 degrees F. Toss apples with sugar and cinnamon; set aside.
Beat eggs, milk and vanilla in large bowl with wire whisk until well blended. Add bread cubes, sausage and 1 1/2 cups cheese and apple mixture; stir gently until evenly coated.
Spoon into lightly greased 13x9-inch baking dish; top with remaining 1/2 cup cheese.
Bake 40-45 minutes or until knife inserted in center comes out clean. Let stand 10 minutes before cutting into 12 squares to serve.
