Heat oven to 350F. Grease 12 muffin cups with Pam cooking spray.
In small bowl, mix flour, baking powder, salt,and nutmeg. in large bowl, stir shortening, 1/2 cup sugar and egg until mixed. Stir in flour mixture alternately with milk. divide batter evenly among muffin cups.
Bake 20-25 minutes or until tops are light golden brown and bottoms are golden brown.
Meanwhile, in shallow dish mix 1/2 cup sugar and cinnamon. Place melted butter in another shallow dish. Immediately roll hot puffs in melted butter, then in sugar-cinnamon mixture. Serve warm.