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Preheat oven to 350 degrees F. Greased a muffin tin or line muffin tin cups with foil liners; set aside.
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In a medium bowl, combine flour, sugar, baking powder, salt, and nutmeg; set aside.
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In a small bowl, beat together egg and milk; set aside.
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In a large bowl, beat butter until light and fluffy, about 1 minute. Add flour mixture, then egg mixture - alternating, and mixing after each addition until just combined. Scrape sides of bowl as needed.
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Portion batter into muffin tins using an ice cream scoop, tins should be 2/3 full.
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Bake 15 to 20 minutes, or until a toothpick inserted in the center of the muffin comes out clean.
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Remove muffins from oven and allow to cool in the muffin tin for at least 10 minutes - until cool enough to handle.
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In a small bowl, melt butter; set aside. In another small bowl, mix cinnamon and sugar until well blended.
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If needed, remove liner from muffins. Dip top and bottom of muffin in melted butter. Roll butter coated muffins in cinnamon-sugar mixture. Place muffins on a plate or baking rack. Repeat until all muffins are coated.