Directions
Preparation:20min  ›  Cook:20min  ›  Ready in:40min 

1. In a bread machine pan, add the milk, water, egg, butter, sugar, flour, salt, nutmeg and yeast in the order recommended by the manufacturer. Set machine to the sweet dough cycle.
2. Once the cycle is completed, turn dough out on to a floured board and let rest for 10 minutes.
3. Roll dough out 5mm thick. Lightly flour a 6cm cutter and stamp out rounds.
4. Place 1/2 teaspoon jam in the centre of half of the rounds. Moisten edges with cold water, top with the remaining rounds and pinch edges together firmly. Place sealed doughnuts on a greased baking tray. Cover and let rise in a warm place until doubled, about 45 minutes.
5. Heat oil to 180 degrees C in deep fryer. Fry doughnuts a few at a time, until golden brown, about 2 to 3 minutes, turning as they rise to the surface. Remove from oil, being careful not to poke doughnuts. Drain on paper towel and sprinkle with sugar or icing sugar to serve, if desired.

Bowl Method:

Mix the yeast with 120ml warm milk and stand for about 5 minutes, until foamy. Add 150g flour and mix until combined - if you have a table top mixer, use the beater attachment, cover and leave to rise until doubled in volume. Add the remaining milk and flour along with the water, sugar, beaten egg, melted butter, salt and nutmeg. Beat until the dough comes together, about 2 minutes. Knead for a minute then put in an oiled bowl, cover and leave to rise again until doubled in size. Then follow remaining instructions above.