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Combine the dry ingredients (flour, sugar, salt, nutmeg) in a bowl.
In a separate bowl, mix the wet ingredients (milk, egg, melted butter, yeast).
Combine the wet and dry ingredients and knead the dough for 10-15 minutes until elastic and soft.
Place the dough in a greased bowl, cover, and let rise for 1.5-2 hours until doubled in size.
Punch down the dough, roll it out to ½ inch thickness, and cut out donut shapes.
Place the donuts on parchment paper and let rise for 20-30 minutes.
Fry the donuts at 160°C/320°F for 1-2 minutes per side until golden brown.
Make the glaze by mixing powdered sugar, melted butter, milk, and vanilla.
Dip the fried donuts in the glaze and place on a wire rack to let the excess drip off.