In a large bowl cream butter or margarine and sugar together until light Add egg and milk Stir until well blended Sift flour a second time with baking powder salt and nutmeg
Add enough of the flour mixture to the butter-sugar mixture to make a soft dough Cover and refrigerate for 12 hour
Turn onto a lightly floured surface and roll into 13-inch thick and cut with doughnut cutter
In a deep skillet or deep fryer heat vegetable oil or Crisco to 365
Fry doughnuts until golden brown on both sides do not crowd
Drain on absorbent paper and dust with powdered sugar or granulated sugar