Mix water, applesauce, vanilla, egg and honey together. Combine flour, apple chips and baking powder. Add wet ingredients to dry and mix thoroughly, scraping sides and bottom to be sure no dry mixture is left.
Pour into large muffin pans sprayed with vegetable spray. Bake at 350 degrees for approximately 1 to 1 1/4 hours, or until toothpick inserted in center comes out dry.