1 c. milk
1 pkg. active dry yeast
1/4 c. warm water
3/4 c. plus 1 tbsp. sugar
4 1/2 c. sifted all-purpose flour
3 tbsp. butter
1 egg
2 tbsp. grated lemon peel
1 1/2 tsp. powdered nutmeg
Salad oil
Fat for deep frying
Confectioners' sugar

Scald milk; pour into large mixing bowl. Let cool until lukewarm. Soften dry yeast in warm water; stir until dissolved. Stir yeast into milk. Add 1 tablespoon sugar. With mixer, beat in 1 1/2 cups flour (until smooth). Cover bowl with folded towel; let rise in warm place (85 degrees), 1 hour.

Cream butter with remaining 3/4 cup sugar in small mixer bowl. Add egg, lemon peel, nutmeg and salt. Continue to beat until fluffy. Beat sugar mixture into yeast mixture. Beat in remaining 3 cups flour.

Grease mixing bowl; turn dough and brush top with salad oil. Again, cover bowl and let rise until doubled in bulk. Pour dough out on floured board; roll 1/2 inch thick. Cut with floured doughnut cutter. Let doughnuts rise until doubled in bulk. Deep fry at 370 degrees. Let drain on thick paper towels; sprinkle with confectioners' sugar. (2 1/2 dozen)