1 1/2 c. flour
1/2 tsp. salt
1 3/4 tsp. baking powder
1/2 tsp. nutmeg
1/2 c. sugar
1/3 c. shortening
1 egg, beaten
1/2 c. milk
1 1/2 c. finely diced apples

Sift first 5 ingredients. Add 1/3 cup shortening; mix until mixture is coarse. Set aside. In another bowl combine egg, milk and diced apples. Add to dry ingredients just until blended.

Spoon into 12 greased muffin cups. Bake at 350 degrees for 20-25 minutes. While donuts are baking, melt 1/2 cup butter. Set aside. Combine 1/2 cup sugar and 1 teaspoon cinnamon. When donuts are done, dip in butter and then in sugar.