Beat shortening, 1/2 cup sugar and egg until smooth.
Combine flour, baking powder, salt and nutmeg; add to the sugar mixture with milk.
Fill greased muffin cups 2/3 full. Bake at 350F for 20 minutes or until toothpick comes out clean.
Meanwhile, combine cinnamon and remaining sugar in shallow bowl. Roll the warm puffs in butter, then in cinnamon-sugar.
Serve immediately.
Nutrition Info Per Serving (1 muffin): Calories 234.9 Total Fat 12.2 g Saturated Fat 6.2 g Polyunsaturated Fat 1.0 g Monounsaturated Fat 4.2 g Cholesterol 35.0 mg Sodium 211.1 mg Potassium 44.0 mg Total Carbohydrate 29.5 g Dietary Fiber 0.5 g Sugars 17.2 g Protein 2.6 g