1. Place paper liners in 7 six-ounce custard cups. Arrange cups in circle on 12-inch plate.
2. Mix baking mix, milk, egg, sugar, margarine and nutmeg. Stir until smooth, about 15 seconds. Fill muffin cups 1/2 full. Microwave uncovered on high (100%) 1 minute; rotate plate 1/4 turn. Microwave until tops spring back when touched lightly, 1 to 2 minutes longer. Remove puffs.
3. Mix 1/4 cup sugar and the cinnamon. Dip tops of puffs into melted margarine, then into cinnamon-sugar mixture.