Heat oven to 350 degrees F.
In medium-size bowl, whisk together flour, baking powder, pie spice, baking soda, salt and cayenne.
In large bowl, beat together butter and sugar until smooth and creamy, about 2 minutes. Add eggs; beat for 1 minute. On low speed, beat in flour mixture alternately with milk; beat just until combined. Stir in shredded apple. Fold in shredded cheese and walnuts. Spoon into 9 x 5 x 3-inch loaf pan.
Bake in 350 degree F oven until toothpick inserted in center tests clean, 60 to 70 minutes. Transfer pan to wire rack; let bread cool in pan 10 minutes. Turn bread out onto rack; let cool.
Store bread well wrapped at cool room temperature for up to 2 days. Makes 1 loaf (16 slices).