Preheat oven to 375º. Grease mini-muffin tin.
Beat together butter and sugar until well blended.
Add egg, beat well.
Sift together flour, baking powder, salt and nutmeg.
Stir into the butter-sugar mixture the dry ingredients, alternating with the milk; blend thoroughly.
Spoon about 1 rounded teaspoon of batter into each greased mini-muffin cup.
Bake in 375º oven for 20 minutes.
Remove muffins from pans.
Melt butter or margarine; set aside.
Mix together cinnamon and sugar.
While muffins are still hot, dip each muffin entirely into the melted butter and then roll in the cinnamon sugar mixture.