2/3 cup sugar, divided
1 1/2 teaspoons ground cinnamon
1/8 tsp nutmeg
1/4 cup (½ stick) butter, softened
1 teaspoon vanilla extract
1 3/4 cups all-purpose flour
2 teaspoons baking powder
1/2 teaspoon salt
1/4 cup milk
* Vegetable oil for frying
In a shallow dish, combine 1/3 cup sugar and 1/2 tsp cinnamon;
In a mixing bowl cream sugar and butter, then add eggs and vanilla, blending well. Add in 1 cup flour, the baking powder, and salt; mixing well. Add remaining flour, cinnamon and nutmeg, forming a soft dough.
Turn the dough onto a floured surface and knead gently for 1 or 2 minutes, until dough is smooth, kneading in additional flour if dough is still too sticky to handle.
Roll out the dough to 1/2-inch thickness, flouring the surface and the rolling pin lightly, if the dough sticks. Cut dough with a 2-inch round cookie cutter.
In a heavy pan, heat 2 inches of oil over medium heat, until
Fry donuts a few at a time, not touching, turning often with tongs, until puffy and golden, 1-1/2 to 2 minutes.
Drain on paper towels and toss in cinnamon/sugar mix while still hot.