Baked Yeast Doughnuts

2 cakes compressed yeast
or 2 pkg active dry yeast
1/4 Cup lukewarm water
1 1/2 Cups milk -- scalded
1/3 Cup butter or margarine
2 eggs
1/2 Cup sugar
2 Tsp salt
1 Tsp nutmeg -- (1 to 2)
4 3/4 Cups flour -- (4 3/4 to 5)
Melted butter or margarine
frosting: *

Soak yeast in lukewarm water.
Add butter to scalded milk and cool to lukewarm.
Add yeast.
Beat eggs; add sugar and beat again; add to milk.
Add salt, nutmeg and beat flour in thoroughly,
adding only enough to make a very soft dough.
Cover and let stand in warm place until double in bulk.
Or let rise in refrigerator until double in bulk, about 3 1/2 hours.
Roll out onto lightly floured board, about 1/3 of the dough at a time.
Roll to 1/2 inch thickness.
Cut with well-floured doughnut cutter or cut into rectangles
about 1 1/2 inches wide and 4 inches long.
Place about 2 inches apart on well greased baking sheets.
Brush well with melted butter or margarine.
Let rise in warm place until double in bulk.
Bake 425-degree oven about 12 minutes or until lightly browned.
Roll in sugar or ice with powdered sugar frosting. (recipe follows)

You may wish to use use canned frosting.
The frosted top may be dipped in coconut or finely chopped nuts.


* BUTTER CREAM FROSTING:
1 lb. sifted powdered sugar.
1/3 cup butter (softened).
3 to 4 tb cream (can use can milk).

Beat thoroughly and then spread on the doughnuts.
For chocolate frosting add 3 tablespoons cocoa.