In a mixing bowl combine flour, the half cup sugar, baking powder, nutmeg and salt. Make a well in the center of dry ingredients.
In another bowl beat egg slightly; stir in milk and one third cup melted butter or margarine. Add egg mixture to flour mixture. Stir just till moistened (the batter may be lumpy). Lightly grease muffin cups. Fill cups about two-thirds full with batter. Bake in 350� oven for 20-25 minutes or till muffins are golden.
Meanwhile, in a shallow bowl combine the quarter cup sugar and cinnamon. Immediately dip tops of hot muffins into the quarter cup melted butter or margarine, then into the cinnamon-sugar mixture till coated. Serve warm.