In a 6-quart stockpot, combine the apples and water and heat to a boil. Reduce heat to low and cover; cook, stirring occasionally, for 40-45 minutes or until apples are tender. To make a chunky sauce, mash everything together. Stir in the brown sugar and pie spice, and continue to cook, uncovered, for another 10-15 minutes, or until the liquid has been absorbed and the sauce has thickened. Allow to cool completely.
Preheat the oven to 400 degrees Fahrenheit. Cream the butter and sugar together in a large mixing basin until light and creamy. 1 at a time, add eggs, beating well after each addition. Blend in the vanilla extract. In a separate bowl, whisk together flour, baking powder, and baking soda; alternately add flour, baking powder, and baking soda to the creamed mixture, mixing well after each addition.
Divide the dough into eight equal sections and roll each into a disk. Make eight 9-inch circles out of parchment. Roll out a dough disk to fit each parchment circle using a floured rolling pin. Place on baking sheets. Bake for 10-12 minutes, or until golden brown. Remove the pans from the oven and place them on wire racks to cool completely.
Spread 2/3 cup filling over 1 layer on a serving plate. Layers should be repeated. Wrap the remaining cake layer in plastic wrap and chill for 1-2 days, or until the layers soften. Sprinkle confectioner's sugar on top if desired.