Pour the cane sugar into a large, wide pot and spread it across the entire bottom. Place it on the heat and warm over medium heat without stirring until the sugar caramelizes: it will dissolve, start to lightly smoke, and darken (it will be brown, but not black!).
Then pour in the cider (carefully, it will splatter) and stir. Add the cinnamon, cloves, and star anise, and warm over medium heat until the drink is hot (but not boiling), for about 5 - 6 minutes. In the meantime, add the apple pieces.