Preheat oven to 350 degrees F. Grease mini muffin pans and set aside.
In a small mixing bowl, cream butter and sugar until light and fluffy. Add egg; mix well.
Beat in milk.
Combine the flour, baking powder, salt and nutmeg; beat into creamed mixture just until moistened.
Fill greased miniature muffin cups two-thirds full.
Bake at 350° for 14-16 minutes or until a toothpick comes out clean. Cool for 5 minutes before removing from pans to wire racks.
Dip muffins in melted butter, then roll in cinnamon-sugar.
Serve warm.
As an alternative, dip only muffin tops in butter then dip in sugar.
To make cinnamon sugar combine 1/2 cup of granulated sugar with 2 teaspoons of ground cinnamon Mix well.