Step 1: Preheat oven to 350 degrees F. Set oven rack to second-lowest position. Grease 12 muffin cups or line with paper muffin liners.
Step 2: In a small bowl whisk the egg with oil and 1/3 cup plus 2 tablespoons of milk and vanilla. In a medium bowl stir together the flour with 3/4 cup sugar, salt, baking powder and 1 teaspoon cinnamon and nutmeg; mix in the oil/milk mixture just until combined. Fold in apples.
Step 3: Spoon batter into prepared muffin cups filling about 2/3 full (do not fill to the top or the batter will run over!).
Step 4: For the streusel; in a small bowl stir together 1/2 cup sugar with 1/3 cup flour, and 1 1/2 teaspoons cinnamon; add in the cold butter cubes, and using your fingers mix together until blended. Sprinkle over unbaked muffins.
Step 5: Bake in preheated oven for 20 to 25 minutes or until muffins test done.
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