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Preheat oven to 350 degrees. In large bowl, stir together flour, sugars, baking powder and salt.
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Add in peanut butter with a pastry blender or two forks until mixed and crumbles are formed.
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Whisk together egg and milk and add to dry ingredients.
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Stir just until moistened.
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Place a spoonful of batter into each of 14 greased or paper lined muffin cups.
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Spoon a teaspoon of jelly in the center of the half filled muffin tins.
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Top each muffin cup with the remaining peanut butter batter, fulling covering the jam layer.
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Bake for 20-35 minutes or until full cooked.
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Let sit in pan for a few minutes before transferring to a wire rack. Serve warm if desired.