Mini-Muffin Donuts

1/2 cup white sugar
1/4 cup margarine, melted
1/2 teaspoon ground nutmeg
1/2 cup milk
1 teaspoon baking powder
1 cup all-purpose flour

1/4 cup margarine, melted
1/2 cup white sugar
1 teaspoon ground cinnamon

Preheat oven to 375 degrees F (190 degrees C). Grease 12 mini-muffin cups.
Mix 1/2 cup sugar, 1/4 cup margarine, and nutmeg in a large bowl. Stir in the milk, then mix in the baking powder and flour until just combined. Fill the prepared mini muffin cups about three-fourths full.
Bake in the preheated oven until the tops are lightly golden, 15 to 20 minutes.
While muffins are baking, place 1/4 cup of melted margarine in a bowl. In a separate bowl, mix together 1/2 cup of sugar with the cinnamon. Remove muffins from their cups, dip each muffin in the melted margarine, and roll in the sugar-cinnamon mixture. Let cool and serve.