Press saute button on instant pot and add coconut oil.
Mix in the onion and apple. Cook, stirring frequently, until soft. About 2 minutes.
Stir in the garlic and mix until fragrant. About 1 minute.
Pour in the broth and deglaze the bottom of the pot.
Turn the instant pot off.
Add the butternut squash, nutmeg, paprkia, cayenne pepper, salt, and black pepper. Stir.
Close the lid and set the pressure release valve to sealing.
Press the manual or pressure cook button and set to 10 minutes.
Quick pressure release.
Remove the lid and turn the insant pot off.
Puree soup with an immersion blender or countertop blender.
Serve the soup, topped with coconut milk, if desired.