Prepare the Apples. Wash, peel, core, and chop the apples into small pieces.
Pressure Cook. Place the chopped apples into the Instant Pot. Add both sugars, ground cinnamon, ground nutmeg, ground cloves, and apple cider or juice to the Instant Pot. Close the Instant Pot lid, set the vent to "Sealing," and cook on High Pressure for 5 minutes.
Natural Release. Once the cooking time is complete, allow the Instant Pot to naturally release pressure for about 10-15 minutes.
Blend and Simmer. Carefully open the Instant Pot lid, and use an immersion blender to puree the cooked apples until smooth. If you don't have an immersion blender, you can transfer the mixture to a regular blender, blend until smooth, and return it to the Instant Pot. Add vanilla extract, if desired. Set the Instant Pot to "Saute" mode and simmer the mixture, uncovered, for 10-15 minutes or until it thickens to your desired consistency.
Cool and Store. Allow the apple butter to cool completely before transferring it to clean, airtight jars or containers. Store in the refrigerator for up to two weeks or freeze for longer preservation.