Beat egg; stir in milk, oil, and applesauce.Mix in remaining ingredients just until flour is moistened. Batter should be lumpy. Grease muffin cups or line with paper baking cups; fill 2/3 full. Mix together 1/2 tsp. cinnamon and 2 Tbsp. sugar. Sprinkle on top of muffins. Bake in 400-degree oven for 20 to 25 minutes. Serve warm with fruit preserves.