Combine first 4 ingredients in a medium mixing bowl. Cut in butter with a pastry blender. Gradually add milk, stirring until dry ingredients are moistened. Roll pastry to 1/8-inch thickness on a lightly floured surface. Cut into 4-inch squares or circles.
Combine applesauce, 1/4 cup sugar, and cinnamon in a small mixing bowl. Place a heaping teaspoon of applesauce mixture in center of each pastry. Moisten edges with water; fold pastry in half. Press pastry edges firmly together with a fork dipped in flour.
Place on greased baking sheets. Bake at 425° for 10 minutes or until lightly browned.