Preheat oven to 400°F (200°C). Line 12-tin muffin pan with jumbo size paper liners or grease with non-stick cooking spray; set aside.
In large bowl, whisk together flour, baking powder, 1½ tsp (7 mL) pepper seasoning and salt. In another bowl, whisk together milk and egg, then whisk in melted butter.
Pour wet ingredients into dry ingredients; fold until just moistened; then fold in zucchini, ½ cup (125 mL) cheese and jalapeno. Divide batter among prepared muffin tins. Sprinkle batter with remaining cheese and pepper seasoning.
Bake 18 to 20 min., or until muffins are golden and tops spring back when lightly pressed. Transfer muffin pan to wire rack to cool slightly before tipping out muffins. Serve warm or at room temperature.
Top each tin of muffin batter with a thin slice of jalapeno before baking for added spice.