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Preheat oven to 170°C/150C fan forced. Lightly grease a 7.5cm-deep, 10cm x 20cm (base measurement) loaf pan. Line with baking paper, allowing the paper to overhang the long sides.
Use electric beaters to beat sugar, butter and vanilla in a bowl until pale and creamy. Add the eggs, 1 at a time, beating well after each addition. Add the sour cream and beat until combined.
Sift flour and baking powder over butter mixture and use a spatula to fold together until combined. Add the apple and fold into mixture until combined.
Transfer to prepared pan. Bake for 1 hour 10 minutes or until the surface is dry and the cake springs back when lightly touched in the centre. Set aside in the pan for 10 minutes to cool slightly before transferring to a wire rack to cool completely.
To make the sour cream frosting, use electric beaters to beat butter and vanilla in a bowl until pale and creamy. Add the icing sugar in batches, beating well between after each addition. Add the sour cream and beat until well combined.
Spread frosting over cooled cake. Dust with cinnamon to serve.