1. Combine 11/2 c. flour, yeast, and nutmeg. In saucepan heat milk, Sugar, oil, and salt just until warm. (115-120 degrees). Add to dry mixture; add egg. Beat at low speed with mixer for 1/2 minute, scraping bowl. Beat 3 minutes at high speed. Stir in enough remaining flour to make a soft dough. Place in greased bowl; turn once. Cover and chill.
  2. Turn dough out on well floured surface; form into ball. Cover; let rest 10 minutes. Roll to 18" x 12" rectangle. Cut in 3" x 2" rectangles. Cover; let rise (30 minutes) - dough will not be doubled. Fry in deep hot fat (375 degrees), turning once, until golden, about 1 minute. Drain. Dip in powdered sugar.

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