Heat your oven to 350°F and generously grease a standard 12-cup muffin pan with butter or nonstick spray. While the oven preheats, gather all ingredients and ensure your egg and milk are at room temperature—this helps them incorporate smoothly into the batter for a tender crumb. I prefer using freshly grated nutmeg here because it gives a noticeably warmer, more aromatic flavor compared to pre-ground spice.
In a small bowl, whisk together the cinnamon and sugar for the coating. Set this mixture aside near your workspace—you'll use it immediately after the puffs come out of the oven while they're still warm and the melted butter is ready to help the coating stick.
In a medium bowl, whisk together the flour, baking powder, salt, and nutmeg until evenly distributed. This prevents lumps and ensures the leavening agent is spread throughout the batter for even rise.
In a large bowl, beat the shortening and sugar together for 2-3 minutes until light and fluffy—this incorporates air into the batter, which helps create those signature tender puffs. Add the room-temperature egg and beat until fully combined, then add the vanilla extract and mix well.
Alternately add the dry ingredient mixture from Step 3 and the milk to the batter from Step 4, beginning and ending with the dry ingredients. Start with about one-third of the dry mixture, then half the milk, then another third of the dry mixture, then the remaining milk, and finish with the final third of the dry mixture. Stir gently after each addition just until combined—don't overmix, as this keeps the puffs tender rather than tough.
Divide the batter evenly among the greased muffin cups, filling each about two-thirds full. Bake at 350°F for 13-15 minutes until golden brown on top and a toothpick inserted into the center comes out clean. The puffs should feel firm but still slightly springy when gently pressed.
Remove the puffs from the oven and let them cool in the pan for just 2-3 minutes—they need to be warm enough for the butter to adhere but cool enough to handle. Working with one puff at a time, dip the top and sides into the melted and slightly cooled butter from Step 2, then immediately roll in the cinnamon sugar coating from Step 2. I find that dipping just the top half gives a beautiful presentation while keeping the texture light. Serve warm or at room temperature.