Heat oven to 400 degrees.
Grease bottom of 12 medium muffin tins, or line with paper baking cups.
Stir milk, oil and egg in medium mixing bowl until blended.
Stir in sugar and Bisquick just until moistened.
Divide batteer among cups.
Drop 1 level teaspoonful fruit preserves in center of each cup.
Bake 13-18 minutes until golden brown.
Cool slightly, remove from pan.
Stir sugar and water in small bowl until smooth.
Drizzle on muffins.