Preheat oven to 350 degrees. Coat a Bundt pan with nonstick cooking spray.
In a microwave-safe bowl, toss together chopped apples, 2 tablespoons sugar, and 2 teaspoons cinnamon. Cook for 2 minutes to soften.
In the meantime, in a pan, melt butter, brown sugar, water, and vanilla. Bring to a boil, turn heat to low, and cook for 2 minutes. Stir often. Set aside.
In a large bowl, blend 3 tablespoons of granulated sugar and 2 teaspoons cinnamon.
Quarter each biscuit from 1 package and roll each piece in about half the sugar/cinnamon mixture. Place biscuit pieces layered evenly in Bundt pan. Spoon ½ of cooked apples evenly over the biscuits. Spoon ½ of cooked sauce over the apples and biscuit pieces.
Quarter each biscuit from the 2nd package and roll each piece in remaining sugar/cinnamon mixture. Place these remaining biscuit pieces layered evenly in Bundt pan. Add remaining cooked apples evenly over top of biscuits. Spoon the remaining ½ of cooked sauce evenly over apples and biscuit pieces.
Bake for 25 minutes. Remove from oven. Let sit for about 5 minutes. While still hot, carefully loosen sides and middle of pan. Invert onto a serving plate.
Serve warm. Slice into 16 slices and let everyone pull their slice apart to eat.