Pulse first 5 ingredients in a food processor 5 times or until crumbly. Spoon mixture into a large bowl. Stir in apple. Shape mixture into 1 1/2-inch balls.
Pour oil to a depth of 3 inches into a Dutch oven; heat to 350°. Fry fritters, in batches, 1 to 2 minutes on each side or until golden. Drain on paper towels. Sprinkle fritters evenly with powdered sugar; serve with Lemon Sauce.
*3 McIntosh apples may be substituted.