Melt the butter in a skillet over medium-low heat. Add the apple and stir to coat. Sprinkle with the sugar and cinnamon, stir. Add water, then cover and cook on low heat until the apples are soft, stirring often, about 5-10 minutes. Let the apples cool.
Make the pie crust dippers: preheat oven to 400°F. Cut 2” circles from the pie crust and place them on a parchment paper lined cookie sheet. Sprinkle each with a pinch of granulated sugar. Bake for about 5-10 minutes, or until they are golden brown. Cool.
Make the frosting: Beat butter until smooth with a hand mixer. Slowly mix in the powdered sugar and pinch of salt until crumbly. Add vanilla and 1 tablespoon heavy whipping cream. Beat until smooth, adding more cream as needed for consistency.
Cut out the center of each cupcake. Add a tablespoon or so of apple filling to each cupcake. Pipe vanilla frosting around the edge of the cupcake so that you can still see the apple filling (I used a 1M tip), then top with a pie crust chip.
Store loosely covered in the refrigerator for up to 2 days.