Dissolve yeast in water; set aside. Scald milk; add sugar to milk; cool to lukewarm in a large mixing bowl. Add yeast and cooking oil to milk mixture. Mix flour with salt and nutmeg. Gradually add enough flour (about 2 cups) to form a dough. Add egg and beat well. Stir in remaining flour; mix well. Cover and set in a warm place until double in bulk. (Can be prepared in advance up to this point. Refrigerate; allow ½ hour after removing from refrigerator).

Knead gently on well floured board or waxed paper. Roll ¼-inch thick. Cut into 3 x 2-inch rectangles. Cover and let rise 30 minutes. Fry in hot oil until golden brown on both sides. Drain; while hot, sprinkle with confectioners sugar (I put confectioners sugar in a paper bag and shake). Yield: About 32.