Combine cereal, oats and cinnamon in a large mixing bowl.
Heat the peanut butter, honey and vanilla in a small pan until smooth.
Pour the peanut butter mixture over the cereal mixture. Add in the applesauce, and mix well.
Pour mixture into a lightly sprayed 9x13 pan (or smaller).
Pack the mixture down firmly with wet fingers or a spatula sprayed with cooking spray.
Bake, stirring every 10 minutes. Add the chopped cranberries the last 10 minutes of baking. Remove once the granola mixture is lightly brown or heated to your liking, about 20-30 minutes. Cool on a wire rack.