- Preheat oven to 350 degrees F (175 degrees C). Grease 2 mini donut pans with spray. 
- Whisk flour, baking powder, nutmeg, and salt together in a bowl. - 2/3 cup all-purpose flour, 1/2 tsp baking powder, 1/4 tsp ground nutmeg or more to taste, 1/8 tsp salt 
- Stir milk and vanilla extract together in a separate bowl. - 1/4 cup milk, 1/2 tsp vanilla extract 
- Beat butter and 1/3 cup white sugar together in a third bowl using an electric mixer until smooth and creamy; beat in egg. - 5 tbsp softened butter, 1/3 cup white sugar, 1 egg 
- Alternate adding flour mixture and milk mixture into butter mixture about 1/3 at a time and mix with wooden spoon until batter is smooth.  
- Spoon batter into a piping bag and pipe into a mini donut pan about 2/3-full. 
- Bake in the preheated oven until a toothpick inserted in the center comes out clean, 8-10 minutes. 
- Mix sugar and cinnamon together in a bowl; add warm doughnuts and gently toss with hands until coated. - 1/3 cup white sugar, 1 tsp ground cinnamon 
- Enjoy!