In a large bowl, mix sugar, margarine, and nutmeg. Stir in milk, then baking powder and flour until just combined. Fill greased mini muffin cups about half full.
Bake at 375°F for 13-16 minutes, until the muffin tops are lightly golden.
In a separate bowl, mix together your ½ cup of sugar with the cinnamon. Removed baked muffins from the cup and dip in ¼ cup melted margarine and roll in the cinnamon sugar mixture.
While muffins are cooling, blend all frosting ingredients. Add to top of muffins and Enjoy!!!