Preheat oven 350 degrees and spray a muffin pan with cooking spray.
Using a stand or hand-held mixer, cream together the 1/2 cup sugar, shortening and egg.
In a separate bowl, sift together the flour, baking powder, salt and nutmeg. Add this to the creamed mixture alternately with milk, beating well after each addition.
Fill muffin cups 2/3 full and bake until golden, about 20 - 25 minutes.
While muffins bake, combine 1/2 cup sugar and cinnamon in a bowl. Melt the butter in a small saute pan over low heat.
Remove from oven and allow to cool for a few minutes. Dip muffins in melted butter and then cinnamon sugar.