Oil (for deep frying)
2 c. sifted flour
3 tbsp. sugar
1 tsp. nutmeg
1/3 c. butter
1 egg
About 1/3 c. milk
1/2 c. confectioners' sugar

Preheat oil to 375 degrees. Combine flour, sugar, and nutmeg in bowl. Cut butter with pastry blender or knives. Set aside. Beat egg in measuring cup. Add milk to measure 2/3 cup. Add to flour mixture. Stir with fork until blended. Knead just until smooth. Roll out to 1/2 inch thickness. Cut out with floured doughnut cutter. Deep fry 3 to 4 minutes. Drain on paper towel. Place confectioners' sugar in a bag. Shake 2 doughnuts at a time to coat doughnuts.