Lightly coat a 15x10x1-inch baking pan with cooking spray; set aside. In a large bowl combine oats, apple, and wheat germ; mix well. In a small saucepan stir together water, honey, and cinnamon. Bring to boiling; remove from heat. Stir in vanilla. Pour over the oat mixture; toss to coat. Spread oat mixture evenly in prepared baking pan.
Bake in a 325 degree F oven about 45 minutes or until golden brown, stirring occasionally. Spread granola onto foil. Cool about 30 minutes before serving. Serve the granola with milk and, if desired, fresh berries. Store remaining granola in a tightly covered container in the refrigerator up to 2 weeks. Makes 8 (1/2-cup) servings.