Preheat your oven to 350°F (175°C) and prepare a muffin tin by greasing it or adding paper liners.

In a medium bowl, whisk together the all-purpose flour, baking powder, and salt until well blended.

In a large bowl, combine the unsweetened applesauce, fat-free milk, granulated sugar, vanilla extract, egg, and melted butter until smooth.

Gradually add the dry mixture into the wet mixture, stirring gently until just combined without overmixing.

Fill each muffin cup about two-thirds full with the batter.

Bake in the preheated oven for 15-20 minutes, checking for doneness at the 15-minute mark.

While baking, mix the granulated sugar and cinnamon together in a small bowl.

Once the muffins are baked, let them cool for a few minutes and then dip them in the cinnamon-sugar mixture.

Serve warm and enjoy!