Preheat oven to 350 degrees F (175 degrees C). Grease muffin cups or line with paper muffin liners. In a medium mixing bowl, stir together flour, 1/2 cup sugar, baking powder, nutmeg and salt. Make a well in the center of the mixture. Stir together egg, milk and 1/3 cup melted butter. Add egg mixture to flour mixture; stir until just moistened (batter may be lumpy). Spoon batter into prepared muffin cups. Bake in preheated oven for 20 to 25 minutes. Meanwhile, combine 1/4 cup sugar, cinnamon When muffins are finished baking, dip tops of muffins in the melted butter, and then in the cinnamon sugar mixture. Serve warm.