01 - Preheat oven to 400°F. Line a baking tray with parchment paper.
02 - In a skillet over medium heat, melt the butter. Add diced apples, brown sugar, cinnamon, nutmeg, and lemon juice. Cook for 6–8 minutes, stirring often, until apples are soft and syrupy. Let cool completely.
03 - Beat together cream cheese, sugar, and vanilla extract in a bowl until smooth and creamy.
04 - Roll out puff pastry on a lightly floured surface to smooth any creases. Cut into 8 equal squares.
05 - Place pastry squares on the prepared baking tray. Lightly score a smaller square inside each one without cutting all the way through, and prick the center area with a fork.
06 - Spread a spoonful of cream cheese filling in the center of each pastry, staying within the scored border. Top with a generous spoonful of the cooled apple mixture.
07 - Brush the exposed pastry edges with beaten egg for a golden finish.
08 - Bake for 18–22 minutes until golden brown and puffed.
09 - Allow danishes to cool slightly. Mix powdered sugar with enough milk or lemon juice to create a drizzle consistency, then zigzag over the cooled danishes. Serve warm or at room temperature.