Preheat oven to 400. Lightly spray muffin tin.
Beat egg. Add half cup milk and one third cup melted margarine. Combine flour, 0.75 cup sugar, baking powder, salt, and nutmeg. Blend well with egg mixture.
Fill greased muffin tins half full. Bake 15 minutes until browned.
Immediately remove muffins from pan and dip in remaining one third cup margarine. Roll in cinnamon/sugar/vanilla mixture. Serve warm.