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Preheat oven to 375°F. Line 12 muffin tins with liners.
Cream together butter and sugar. Add the egg and vanilla and mix to combine.
Sift together flour, baking powder and nutmeg. Add it and the milk to the butter mixture. Stir to incorporate.
Spoon into lined muffin tins.
Bake for 10 minutes or until a toothpick inserted in the center comes out clean.
Dip the tops into the melted butter, then into the cinnamon sugar mixture.