In a bowl, beat shortening and egg. Combine the flour, sugar, baking powder, salt and nutmeg. Stir into egg mixture alternately with milk (batter will be stiff). Fill greased or paper-lined muffin cups about two-thirds full.
Bake at 350° for 15-20 minutes or until muffins test done. For topping combine sugar and cinnamon. When puffs are removed from the oven, immediately roll each in butter and then into cinnamon-sugar. Serve hot.