Add apples, water, and lemon juice to the instant pot. Close the lid and seal the pressure valve. Set manual on high for 20 minutes. Allow the pot to naturally release, about 30 minutes.
Use an immersion blender to puree the apples until they look more like a sauce. Add sugar, vanilla, and spices. Turn on the saute feature and cook the apple butter uncovered for another 25-30 minutes, or until it thickens enough to be spreadable, stirring occasionally.
Click on the time in the directions to start a timer!If you don't have an immersion blender, you can ladle the apples into a regular blender. I recommend picking up an immersion blender, because it's a lot easier.