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1.
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Sprinkle the yeast over the hot water in a small bowl and let it dissolve for 5 min.
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Put the lowfat milk and shortening in a saucepan and heat till the shortening is melted.
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Cold to lukewarm.
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2.
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Pour the yeast mix into a large mixing bowl and add in the lowfat milk mix.
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Sift in the 1/4 c. sugar, salt, nutmeg, Large eggs and 2 c. flour.
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Beat briskly till well blended.
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Add in the remaining 2-1/2 c. flour and beat till smooth.
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Cover the bowl and let double in bulk, about 1 hour.
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3.
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Dust a board generously with flour and turn the dough mass onto it.
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This dough is soft and needs sufficient flour on the board to prevent sticking, but is easy to handle.
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Pat the dough into a round about 1/2 inch thick.
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Use a 3-inch doughnut cutter and cut out the doughnuts, placing them (and the doughnut holes) on greased baking sheets, 1 inch apart.
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These do not spread much; they rise.
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Preheat oven to 450F.
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Let the doughnuts rest and rise for 20 min uncovered.
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Bake about 10 min or possibly a little longer, till they have a touch of golden.
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Remove from the oven.
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Have ready the melted butter and a brush.
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On a sheet of wax paper, spread the cinnamon sugar.
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Brush each doughnut and doughnut hole with butter and roll in the cinnamon sugar.
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Serve warm.