In a mixing bowl combine flour, the 1/2 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 1/3 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 1/4 cup sugar and cinnamon. Immediately dip tops of hot muffins into the 1/4 cup melted butter or margarine, then into the cinnamon-sugar mixture till coated. Serve warm.