Preheat oven to 400ºF. Line 12 medium muffin cups with paper liners; set aside.
Combine flour, 1/2 cup sugar, blueberries, baking powder, 1 teaspoon cinnamon and salt in a medium bowl.
Combine egg, buttermilk and butter in a small bowl. Add to Flour mixture; mix just until moistened.
Spoon about 1 tablespoon batter into each muffin cup liner. Drop a teaspoon of preserves into center of batter in each cup; top with remaining batter.
Combine 1 tablespoon sugar and ¼ teaspoon cinnamon in small bowl; sprinkle over batter.
Bake 18-20 minutes or until lightly browned. Remove cupcakes to wire rack to cool completely.