Making the Donut holes:

1. In a large bowl, combine the flour, sugar, baking powder, salt and nutmeg. In a small bowl, combine the egg, milk and butter. Add wet ingredients to dry ingredients and mix well.
2. In a large deep skillet or deep fryer, heat oil to 375 degrees. Drop dough by heaping teaspoonfuls, five or six at a time, into oil. **Do Not overcrowd your pan or the donuts will not cook properly** Fry until lightly browned, about 1-2 minutes, turning once. Drain on paper towels.

Making the Glaze:

1. Combine milk and vanilla in a medium saucepan over low heat. Allow the mil to mixture to warm. Sift confectioners’ sugar into milk mixture. Whisk slowly, until well combined. Remove the glaze from the heat and set over a bowl of warm water. **This will keep the glaze from thickening up and allow it to be nice and runny allowing the donut holes to coat itself nicely**
2. Dip doughnuts into the glaze, 1 at a time, and set on a draining rack placed in a half sheet pan for 5 minutes before serving.
3. Serve and Enjoy!