Maryam's French Cinnamon Puffs

3 cups flour
1 tablespoon baking powder
1 teaspoon salt
1/2 teaspoon freshly ground nutmeg
1 cup sugar
2/3 cup shortening
2 eggs
1 cup milk

For dipping:
1 stick butter
 1 1/2 cups sugar
 1 tablespoon cinnamon

*Preheat oven to 350. Lightly grease muffins cups. In a bowl, stir together flour, baking powder, salt and nutmeg. Set aside.
*In a different bowl, cream together 1 cup sugar and shortening. Add eggs and mix until incorporated.
*Add flour mixture and milk alternately to creamed mixture, beating well after each addition.
*Fill prepared muffin cups 2/3 full. Bake for 15-20 minutes.
*In a bowl, melt butter. In a separate bowl combine remaining sugar and cinnamon. Dip baked muffins in butter while still warm, coating thoroughly then coat with cinnamon-sugar mixture.