Heat the oven to 350 degrees. Place paper liners in muffin tins.
Blend together three-fourths cup of the sugar and the nutmeg in a small bowl and set aside.
To make the batter, cream the butter, coconut powder and 1 cup of the remaining sugar in an electric mixer fitted with a flat paddle.
Fill the tins three-fourths full with batter. Sprinkle each cupcake with one teaspoon of the sugar-nutmeg mixture.
This recipe yields 24 cupcakes.
Comments: Cream of coconut powder from Thailand is available in Asian markets.