In a mixing bowl, combine flour, sugar, baking powder, salt, and nutmeg.
In another bowl, whisk together milk, eggs, and melted butter.
Gradually add the wet ingredients to the dry ingredients, mixing until just combined.
Heat oil in a deep fryer or heavy pot to 350°F (175°C).
Roll out the dough on a floured surface to about 1/2 inch thick.
Use a donut cutter to cut out donut shapes.
Carefully place the donuts into the hot oil, a few at a time.
Fry each donut for about 1-2 minutes on each side until golden brown.
Remove donuts from oil and drain on paper towels.
Allow to cool slightly before glazing or decorating.