Remove skin of the apple and cut into small pieces.
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Place them in a pan with the water, lemon juice and vanilla essence.
Bring to a boil, then turn the heat down to a simmer and cook uncovered for 30 minutes to break the apples down and to thicken the sauce, stirring occasionally.
Remove from heat. Stir in the sugar.
Let cool completely. Store in refrigerator. When ready to serve, sprinkle with some ground cinnamon if desired.