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Melt the butter over medium heat, add diced apples and a sprinkle of nutmeg. Cook for about 5 minutes stirring occasionally until apples are a little bit soft. Turn off heat, mix in the oatmeal and set aside.
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Pre heat oven to 350 degrees. Mix the two kinds of flour, 1 cup of sugar, baking soda, and salt together. In a large bowl mix the milk sour cream, egg, vanilla and oil together, mix well.
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Add the dry ingredients to the wet mixing with a hand mixer or in a stand mixer. When completely incorporated fold the apple and oat mixture in by hand.
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Mix the cinnamon with the remaining ½ cup of sugar.
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Pour half the batter into a greased loaf pan then top with half the cinnamon sugar. Carefully pour the remaining batter over top and sprinkle on the rest of the cinnamon sugar. Using a knife swirl the cinnamon layers into the loaf.
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Bake the loaf for about 45 minutes or until a tester comes out clean.