| • | In a bread machine pan mix the milk, water, beaten egg, salt, melted butter, sugar, bread flour, nutmeg and yeast. Keep bread machine to the sweet dough cycle.
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| • | Turn dough out onto a floured board and cool it for ten minutes.
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| • | Roll dough out to 1/4-inch thickness; then cut it into 2 1/2 inch rounds.
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| • | Place jam in center of half of the prepared rounds.
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| • | Moisten the edges with chill water; top with the remaining rounds.
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| • | Place the doughnuts on a greased sheet and cover.
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| • | Allow it to rise until doubled about 45 minutes.
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| • | Heat oil in fryer to 175 degrees C and fry either layer of doughnuts at a time until golden brown. |
