Combine and cool to lukewarm.
Add 2 Tablespoons yeast softened in 1/4 cup warm water, with 1 Tablespoon sugar.
Add 1 1/2 cup flour, stir, and let rise til very light.
Add 1 beaten egg, 1 teaspoon nutmeg, and 2 1/2 cups flour. Mix well. Dough will be sticky. Let rise until doubled.
On a floured board, roll dough out to ¾ inch thickness. Cut into strips, about 5 inches long, and form into circles. Cover with a light dishtowel, and let rise til doubled.
Fry in 365° fat, gently placing each doughnut top side down, flipping when golden brown and frying for about 2 minutes more. Drain on paper towels or brown bag. We like to dip in maple syrup while hot, or frost with maple cream.