1Heat oven to 400°F. Grease bottoms only of 12 regular-size muffin cups with shortening or cooking spray, or line with paper baking cups.
2In medium bowl, stir milk, oil and egg until blended. Stir in Bisquick mix and granulated sugar just until moistened. Divide batter evenly among muffin cups. Drop 1 level teaspoon fruit preserves onto center of batter in each cup.
3Bake 13 to 18 minutes or until golden brown. Cool slightly; remove from pan. In small bowl, mix powdered sugar and water until smooth; drizzle over warm muffins.