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Preheat the oven to 350ºF. Spray a donut pan with non-stick cooking spray then use a paper towel to evenly coat the entire donut well.
In a smaller bowl, combine the flour, nutmeg, sugar, baking powder and salt, mix until combined. Set aside.
In a mixing bowl, combine the milk, egg, vanilla extract and vegetable oil, use a whisk or spatula to beat. Gradually add the flour mixture, mixing by hand with a spatula just until combined.
Transfer the batter to a ziplock bag, then cut off one corner and pipe the batter into the donut wells. Alternatively, use a cookie scoop and drop dollops of batter into the wells. Use a small spatula to smooth the tops of the batter if the batter is uneven. Fill the wells ½ to ¾ths full.
Bake for 10-11 minutes or until a toothpick inserted in the center of a donut comes out clean. Allow the donuts to cool for 10 minutes in the donut pan. Then, turn the donut pan upside down and hit the pan again a counter a few times to release the donuts.
While the donuts are still warm, put the powdered sugar in a ziplock bag. Add one donut at a time to the bag, shake to coat. Repeat as necessary. If the coating isn’t sticking, very lightly brush the donuts with melted butter, then shake in the bag.