Grease twelve 2-1/2-inch muffin cups or line with paper bake cups. Set muffin cups aside.
In a medium mixing bowl stir together flour, the 1/2 cup sugar, the poppy seed, lemon peel, baking powder, and salt. Make a well in the center of flour mixture.
In another medium bowl combine egg, milk, and oil. Add egg mixture all at once to flour mixture. Stir just until moistened (batter will be lumpy). Spoon batter into the prepared muffin cups, filling each 2/3 full.
Bake in a 375 degree F oven for 20 to 25 minutes or until golden. Cool in muffin cups on a wire rack for 5 minutes. Remove from pans. Dip tops of muffins into melted butter or margarine, then into the 2 tablespoons sugar to lightly coat. Serve warm. Makes 12 muffins.
Cool muffins; pack in airtight freezer container; seal, label, and freeze up to 1 month. To reheat: wrap frozen muffins in foil. Place in 300 degree F. oven for 15 to 18 minutes or until warm.