Make a soft doughnut dough, cut rings, fry until golden, and roll in powdered sugar.

Steps

1. Sift flour, baking powder, nutmeg and salt together.
2. Mix egg, milk, sugar and melted butter or oil; add the dry ingredients to the wet ones.
3. Add more flour to make the dough just firm enough to handle, but keep the dough as soft as possible. Chill.
4. Put a third of the mixture on a floured board; knead slightly. Pat and roll out to 1/8 inch thick. Shape with a floured doughnut cutter or use a glass to cut circle and a bottle top to cut out the hole. Leave trimmings to roll at the end.
5. Roll and shape remaining dough as before. Repeat until all the dough is cut out.
6. Put the doughnuts on a floured piece of wax paper. Let stand 3 to 10 mins. before frying.
7. Heat fat until cube of bread browns in 40 secs. (260°F.) Doughnuts will soak fat if oil is not hot enough and brown too much if oil is too hot.
8. Lower doughnut gently into the fat and fry three or four at a time on one side, turn and brown on other side.
9. Lift from fat with a fork without piercing and drain on paper towels. Makes 18.
10. Roll in powdered sugar or put sugar in a bag and shake doughnuts.