Preheat your oven to 375°F (190°C) and line a baking sheet with parchment paper.

In a medium-sized saucepan over medium heat, combine diced apples, granulated sugar, brown sugar, cinnamon, nutmeg, flour, and lemon juice. Stir and cook for 5-7 minutes until the apples soften and the mixture thickens. Remove from heat and let cool slightly.

Stir the caramel sauce into the cooled apple mixture until evenly combined.

Roll out the refrigerated pie crusts on a lightly floured surface. Use a 4-5 inch circular cutter (or a bowl) to cut out circles.

Place a spoonful of the caramel apple filling in the center of each circle. Be careful not to overfill.

In a small bowl, whisk the beaten egg and water together to make an egg wash. Brush the edges of each pie crust circle with the egg wash.

Fold the dough over the filling to create a half-moon shape. Press the edges together with a fork to seal tightly.

Transfer the empanadas to the prepared baking sheet. Brush the tops with the egg wash for a golden finish.

Bake in the preheated oven for 18-22 minutes, or until the empanadas are golden brown.

Allow the empanadas to cool for 5-10 minutes before serving. Optionally, dust with powdered sugar for garnish.