PREHEAT oven to 400° F. Grease or paper-line 12 muffin cups.
COMBINE flour, sugar, baking powder, salt, cinnamon
and nutmeg in medium bowl. Mix apple, water, dry milk, vegetable oil and egg in small bowl; add to flour mixture and stir
until moistened. Stir in cereal. Spoon into prepared muffin cups, filling 2/3 full.
BAKE for 12 to 15 minutes or until
wooden pick inserted in center comes out clean. Remove to wire rack; cool slightly. Serve warm.