Any idea what this gadget might be? I bought it at a yard sale for a quarter...it is sterling silver

here is a picture of it in a mug...

solid charcoal incense burner????????

I'd venture to say it came out of a bartender's set and is a measuring device for liquor. This is used in some places instead of a shot glass - and usually is an item included in a bar set with a shaker, strainer, and other bar related items.

A measuring device for liquor.

I agree with JonesGirlinMo - my Dad was a bartender in a nightclub back in the 40's and I think I remember a couple of these that he had. I think that the indentation/line that you see would be either a single or double shot. Easiest way to find out is to take a shot glass of water and see if the amount falls the same in your gadget. The little "nub" you have it hanging on the cup in the picture is just for that reason - they could then just flip the shot into the glass.

It reminds me of something I saw many years ago at a Christmas party. The hostess was serving a mulled wine drink and she heated brandy in a little container like yours and poured it flaming into the bowl of mulled wine. I'd have paid more attention if I had known that 30 years later I'd want to identify it!

Thanks all.....it does indeed hold one shot of liquid

I'd have never figured it out on my own!!