1Heat oven to 400°F. In medium bowl, stir Bisquick mix, 2 tablespoons sugar, the nutmeg, cinnamon, milk and egg until soft dough forms.
2Place dough on surface sprinkled with Bisquick mix. 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.
3To 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).
4Bake 8 to 10 minutes or until light golden brown. Immediately dip each bow and button into melted butter, then in 1/2 cup sugar. Serve warm.