Grease twelve 2 1/2-inch muffin cups or line with paper bake cups; set aside.
In medium mixing bowl stir together flour, brown sugar, baking powder, 1 teaspoon cinnamon and salt. Cut in shortening until mixture resembles coarse crumbs.
In small mixing bowl combine egg and milk. Add all at once to dry mixture. Stir just until moistened (batter should be lumpy). Fold in pecans or walnuts.
Spoon 2 tablespoons of batter into each prepared muffin cup. Top each with 2 teaspoons of apple butter. Spoon about 2 tablespoons more of batter on top of apple butter.
For topping, combine granulated sugar and 1/4 teaspoon cinnamon. Sprinkle topping over batter. Bake in 400° oven about 20 minutes or until golden. Cool in muffin cups on wire rack 5 minutes; remove muffins from muffin cups. Serve warm. Makes 12.