Preheat oven to 400ª F. Grease or paper-line 12 muffin cups.
Combine flour, sugar, baking powder, salt, cinnamon and nutmeg in a medium bowl.
Mix apple, water, dry milk, vegetable oil and egg in a small bowl.
Add it to the flour mixture and stir until moistened.
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.
:- Makes 12 muffins.