Combine the brown sugar, lemon peel, the first 1/8 ts nutmeg and the melted shortening. Divide the mixture evenly among 16 greased muffin cups. Place a spoonful of the drained canned pineapple and a cherry half in the bottom of each cup. In a mixing bowl, combine the flour, sugar, baking powder, salt and remaining nutmeg. Make a well in the center of the mixture and add the egg, milk and oil which have been blended well before adding. Add all at once to the dry ingredients and stir until just moistened and no streaks remain. Spoon into the prepared muffin cups and bake in a 375 degree F. oven for 18 to 20 minutes or until done. Remove from the oven and immediately invert the muffins onto a wire rack to cool.