Heat oven to 350ºF. Grease 15 medium muffin cups, 2 1/2x1 1/4 inches.
Mix shortening, 1/2 cup sugar and the egg throughly in large bowl. Stir in flour, baking powder, salt and nutmeg alternately with milk. Divide batter evenly among muffin cups.
Bake 20 to 25 minutes or until golden brown.
Mix 1/2 cup sugar and the cinnamon. Roll hot muffins immediately in melted butter, then in sugar-cinnamon mixture. Serve hot.