In mixer bowl, cream together the first 1/2 cup sugar, the shortening and the egg. Sift together flour, baking powder, salt and nutmeg; add to creamed mixture alternately with milk, beating well after each addition. Fill 12 greased muffin pans 2/3 full. Bake in 350 degree oven for 20 to 25 minutes. Combine the remaining sugar and the cinnamon. Remove muffins from oven; immediately dip muffins in melted butter, then in cinnamon-sugar mixture till coated. Serve warm. Makes 12 muffins.