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Heat oven to 400 degree. In a med. bowl, stir Bisquick, 2 tbsp. sugar, nutmeg, cinnamon, milk and egg until soft dough forms.
Place dough on surface sprinkled with Bisquick. Roll dough into a ball; knead about 5 times. Press or roll dough until 1/2 inch thick. Cut dough with doughnut cutter dipped in Bisquick mix.
To make bow shapes, hold opposite sides of each ring of dough, then twist to make a figure 8. On ungreased cookie sheet, place bows and buttons (the dough from the center of each ring).
Bake 8 to 10 minutes or until light golden brown. Immediately dip each bow and button into melted butter, then in 1/2 c. sugar. Serve warm.
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