In a large saucepan bring to a boiling point:

1 1/2 c. milk

Remove from heat and stir in:

1/3 c. shortening
1/4 c. sugar
2 tsp. salt
2 tsp. nutmeg

When lukewarm - add:

4 3/4 c. sifted flour
2 lg. well beaten eggs
2 yeast cakes, dissolved in 1/4 c. lukewarm water

Beat dough until well mixed. Cover pan and let stand in a slightly warm place until dough is light and double in bulk, about 60 minutes. Turn dough onto a well floured board, turning 2 or 3 times to form a stiff ball. Roll lightly (avoid stretching) until about 1/2 inch thick. Cut with a 3 inch cutter. Place rings carefully 2 inches apart on greased baking sheets. Brush rings with butter and let rise in warm place until double in bulk (about 20 minutes). Bake at 425 degrees for 8-10 minutes until golden brown. As soon as donuts are removed from oven, brush again with butter and roll in granulated sugar. Makes 2 1/2-3 dozen.