Baked Apple Doughnuts

1. Sift together: flour, baking powder, salt, nutmeg, and 1/2 cup sugar in a medium sized bowl and set aside.
2. Cut in the shortening with a pasty blender until mixture looks like coarse cornmeal. Set aside.
3. In a separate bowl, combine the egg, milk, and apples. Mix well.
4. Add the apple mixture into the dry ingredients and mix till just blended.
5. Spoon the batter into 12 greased muffin cups, filling the cups 2/3 full.
6. Bake at 350F for 20-25 minutes or until done.

Meanwhile, make the topping:
1. Melt butter and set it aside.
2. Combine the 1/2 cup sugar with the cinnamon mixing well and also set this aside.
3. Remove donuts immediately from pan and roll first in butter coating evenly, then roll in cinnamon mixture.
4. Cool on wire racks.