Preheat the oven to 350ºF and grease a muffin tin.
Put oats into a blender and blend until they reach a flour-like consistency.
Dump the oat flour into a mixing bowl and add baking powder, salt, nutmeg and pecans and mix well.
In another bowl, mix together the applesauce, sugar, eggs, orange peel, vanilla and milk.
Combine the wet and dry ingredients and mix just until combined.
Pour batter into greased muffin tins, filling each ¾ full.
Bake in the preheated oven for 14-18 minutes.
While muffins bake, melt butter in a small bowl and mix cinnamon sugar in another bowl.
Let muffins sit for 5 minutes after they come out of the oven.
Remove muffins from tin, dip the tops in melted butter and then cinnamon-sugar.
Place on cooling racks until they are fully cooled.