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scald milk, cool to lukewarm and add yeast to dissolve.
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add oil, egg, water, nutmeg, sugar and salt blend well with spoon.
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add flour gradually, beating well. cover and let rise in warm place until doubled in size.
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turn dough onto floured surface, knead gently.
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roll into 18"x12" rectangle, cut into 3'x2' rectangles. (or your favorite shape).
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cover and let rise about 30 minutes.
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fry only a few doughnuts at a time in hot oil (375 degrees F) until golden brown, turning to insure even cooking and browning.
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drain on paper towels. finish with your favorite frosting or topping. best served fresh and hot.