Buttermilk gives these old-fashioned cake doughnuts their tangy appeal; a dusting of sugar and freshly grated nutmeg adds a spicy crunch.
In a medium bowl, whisk together flour, ⅔ cup sugar, 1 tbsp. nutmeg, baking powder, salt, and baking soda; set aside. In a bowl, whisk together egg and egg white until frothy. Whisk in buttermilk and butter. Stir buttermilk mixture into dry ingredients to form a dough. Transfer dough to a floured surface; gently roll to ½" thickness. Using a floured 3¼" round cookie cutter, cut out rounds of dough and transfer to parchment paper-lined baking sheets.
Repeat until all dough is used. Using a 1⅜" round cookie cutter, cut out center of each round. Chill doughnuts and holes for 30 minutes. Meanwhile, combine remaining sugar and nutmeg in a large paper bag; set aside.Pour oil into a 6-qt. Dutch oven to a depth of 2"; heat over medium-high heat until a deep-fry thermometer reads 325°. Working in small batches, fry doughnuts and holes, turning, until golden brown, 2–3 minutes for doughnuts and 1–2 minutes for holes.
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