Preheat oven to 400°F. Lightly grease 12 muffin cups or line with paper baking cups. Set aside. Mix 2 cups flour, 2/3 cup sugar, baking powder, baking soda and nutmeg in large bowl. Mix applesauce, milk, oil, egg and cinnamon extract in medium bowl. Add to flour mixture; stir just until dry ingredients are moistened.