In a mixing bowl combine flour, the 1/2 cup sugar, baking powder, nutmeg and salt.
Make a well in the center of dry ingredients.
In another bowl beat egg slightly; stir in milk and 1/3 cup melted butter.
Add egg mixture to flour mixture.
Stir just until moistened (the batter may be lumpy).
Lightly grease muffin cups. Fill cups about two-thirds full with batter. Bake in a 350 oven for 20-25 minutes or until muffins are golden.
Meanwhile, in a shallow bowl combine the 1/4 cup sugar and cinnamon.
Immediately dip tops of hot muffins into the 1/4 cup melted butter, then into the cinnamon-sugar mixture until coated. Serve warm.