Combine Bisquick, 1/4 cup sugar, and 1 teaspoon cinnamon. Add applesauce, milk, egg and oil, and beat vigorously for 30 seconds. Fill greased muffin pans 2/3 full and bake 12-15 minutes. Cool slightly and remove from pans.
Mix remaining sugar and cinnamon. Dip tops of muffins in melted butter, then in sugar-cinnamon.
