Baked Apple Doughnuts

1-½ cup flour
1-¾ tsp. baking powder
½ tsp. salt
½ tsp. nutmeg
sugar
1/3 cup shortening
1 egg, beaten
¼ cup milk
½ cup grated unpeeled apple
1 tsp. cinnamon
½ cup melted butter

Sift first 4 ingredients and ½ cup sugar together into bowl. Cut in shortening until crumbly.

Stir in egg, milk and apple, mixing well.

Fill greased muffin cups 2/3 full. Bake at 350 degrees for 20 minutes.

Mix 1/3 cup sugar and cinnamon in small bowl.