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Preheat oven to 400 degrees fahrenheit.
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Beat egg and milk together set aside.
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Sift flour, baking powder, salt, nutmeg and sugar together.
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Cut in margarine until the mixture is crumbly; add the egg/milk mixture.
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Mix in currants.
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Roll dough on floured surface to about a 1/2 inch thick.
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Cut with round cookie cutter.
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Place cookies on an ungreased baking pan.
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Bake for approximately 12 minutes or until the tops are golden brown.
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After removing cookies from the oven, while they are still hot, sprinkle tops with sugar to taste.