Ok here is my recipe...

1 box DH french vanilla
3 eggs
1/3 c oil
1 1/3 c water
2 tbsp mayo
2 tsp french vanilla ext

I am filling the nut cups about 1/2 way (4 oz cups, using the large scoop from pampered chef) on a cookie sheet, and cooking for 20 min at preheated 325.

Why would they shrink and pull away like this. If I make this recipe in the regular cupcake liners using a cupcake pan, no problems.

Any suggestions?

Because the little cups do not have the shelter of the pan, they could be over-baking slightly. You could try using an even lower temp. Do the cups fit in a muffin tin? I think I might try putting them in the tins just for the added protection.

No, they do not fit into my tin, I tried...

I think I will try lowering the temp to 300 and see what happens. Shoot, I was really hoping these nut cups would work out, as I have about 250 of them now...