Preheat oven to 350. Lightly grease a muffin tin. In a large bowl, beat together sugar and egg until light in colour. In a small bowl, whisk together flour, baking powder, salt and nutmeg. Pour into egg mixture and stir to combine. Pour in vegetable oil, milk and vanilla extract. Divide batter evenly into 10 muffin cups, filling each about 3/4 full. Bake for 15-18 minutes, until a tester inserted into the centre comes out clean.
While muffins are baking, melt butter and pour remaining sugar into a small bowl. When muffins are done, lightly brush the top of each with some melted butter, remove from the pan and roll in sugar. Cool on a wire rack.|