Add flour, starting with a small amount at 1st, to your milk, mashed potatoes, baking powder and nutmeg.

Keep dough as soft as can be handled (ie. Don't add too much flour right off).

Roll flat and cut with a donut cutter.

Bring oil to a boil in a pan and carefully drop the dough into the hot oil; deep-frying until solid.

Place the sugar in a brown paper bag and drop fried donuts into the bag; shaking to coat.

Serve warm.