Whisk flour, salt, cinnamon and nutmeg in a medium bowl and set aside. In the bowl of a stand mixer, add butter, cream cheese, sugar and vanilla and cream on medium speed with the paddle attachment until pale and fluffy, or about 2 minutes.
With mixer on low speed, add dry ingredients until just combined. Add dried apples and mix only until combined.
On a sheet of parchment paper, shape the dough into a log about 2 inches in diameter. Wrap up in parchment paper and freeze until firm, or at least one hour.
Preheat oven to 350°F. Remove dough from freezer and roll in chopped walnuts. Slice into 1/4 inch slices (roll the outside in walnuts again after slicing if necessary) and place on a baking sheet lined with parchment paper. Bake until golden brown around edges, or about 16-18 minutes. Cool for 2-3 minutes on trays before removing from trays and putting on a wire rack to cool completely.
If you don't have a stand mixer, a hand mixer will work as well.
Make ahead tip: cookie dough logs, well-wrapped, can be frozen for up to 3 months.