Preheat oven to 400. Lightly spray muffin tin.
Beat egg. Add 1/2 cup milk and 1/3 cup melted margarine. Combine flour, 3/4 cup sugar, baking powder, salt, and nutmeg. Blend well with egg mixture.
Fill greased muffin tins 1/2 full. Bake 15 minutes until browned.
Immediately remove muffins from pan and dip in remaining 1/3 cup margarine. Roll in cinnamon/sugar/vanilla mixture. Serve warm.