Preheat oven to 400 degrees. Grease a 12 cup muffin pan really well. Cream butter, sugar and egg until light and fluffy. Sift together flour, salt, baking powder and nutmeg. Add alternately with milk to creamed mixture. Mix well to a stiff dough. Stir in nuts. Drop by 2 tablespoon into muffin pan cups. Bake for 20 minutes. Combine powdered sugar and cinnamon in a bag. Dip tops of puffs into the melted butter and then shake in bag with sugar and cinnamon.