Place half the bread cubes in an ungreased 11 x 7 inch baking dish. Cover with cream cheese cubes, distributing evenly. Sprinkle with chopped apple. Top evenly with remaining bread cubes.
Beat together eggs, milk and cinnamon until well blended; pour over bread mixture in dish. Bake in a preheated 375 degree oven about 35 minutes, or until set. Sprinkle with confectioners' sugar. Serve with syrup.