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Prep: Preheat oven to 375˚F. In a small bowl, combine ½ cup brown sugar, 1 tsp cinnamon and ⅛ tsp nutmeg and stir with a fork. Stir in ⅓ cup dried cranberries and set aside.
Wash and core the apples using a melon baller, or small paring knife, leaving the base intact to keep the filling in - don't cut all the way through! Place apples in a casserole dish just big enough to hold the apples without them touching.
Stuff Apples: Divide the filling evenly between apples. Top each stuffed apple with ½ Tbsp butter, top with walnuts if using, and sprinkle with any remaining cinnamon mixture. Set apples into a 9x13 casserole dish.
Bake: Pour 1 cup hot water into the casserole dish and bake at 375˚F for 45 minutes to 1 hour or until apples are soft (but not mushy). Baking time can vary by the type and size of apples you are using. My Jonagold apples (pictured here) were perfect after 45 minutes but I've had larger Braeburn apples take 1 hour.
To Serve: Spoon the juices from the baking dish over the apples and serve each apple topped with whipped cream and caramel or a scoop of ice cream.