In a bowl, beat shortening, 1/2 cup of the sugar and egg together until smooth.
In another bowl, whisk the flour, baking powder, salt and nutmeg together. Add the flour mixture to the egg mixture alternately with milk.
Fill 12 greased muffin cups two-thirds full. Bake at 350 degrees for 20 minutes or until a toothpick inserted in the center comes out clean. Allow to cool for 5 minutes before removing from pan.
Meanwhile, combine cinnamon with the remaining sugar in a shallow bowl. Roll the warm puffs in the melted butter followed by the cinnamon-sugar. Serve immediately. Makes 12 servings.