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MIX flour, baking powder and salt in large bowl. Mix cereal and milk in medium bowl; let stand 3 minutes. Stir in egg, applesauce, sugar, margarine and orange peel. Add to flour mixture; stir just until moistened. (Batter will be lumpy.)
SPOON batter into muffin pan which has been sprayed with cooking spray, filling each cup 2/3 full.
BAKE at 400°F for 20 minutes or until golden brown. Serve warm.