Beat the softened butter, confectioners' sugar and brown sugar together at medium-high speed in the bowl of a stand mixer fitted with the paddle attachment. Scrape the bowl once or twice, and beat for two to three minutes or until the mixture is creamy. Blend in the egg and then the vanilla extract until combined.
Whisk the flour, cinnamon, baking powder, salt and nutmeg together in a separate bowl. Blend this dry mixture into the butter-sugar mixture in two additions, and scrape the bowl as needed. Cover the bowl and chill the dough for 30 minutes.
Preheat the oven to 325°F and line a 15x10x1-inch baking sheet with parchment. Pour granulated sugar into a small bowl. Roll the cookie dough into 24 balls. (Each ball is about 1 rounded tablespoon.) Then, flatten the balls slightly and roll them in the granulated sugar to coat them. Place them on the prepared baking sheet 2 inches apart. Editor's Tip: When rolling the dough into balls, make them very smooth all the way around. Any cracks in the dough will widen during baking and let the apple butter melt out, so seal them up.
Press the back of a teaspoon measuring spoon into the center of each dough ball to make an indentation. Then, use your thumb and forefinger to pinch up the sides and make the well in the center larger and deeper. Spoon a teaspoon of apple butter into each center. Editor's Tip: Keep any unrolled dough in the fridge while you bake the cookies to keep it from warming up.
Bake the cookies for 13 to 14 minutes or until the edges are set. Transfer them to a wire rack and let the cookies cool completely.
