In a large mixing bowl, combine the flour, sugar, yeast, nutmeg and salt.

In a separate bowl, whisk together the warm milk, melted butter, egg, and vanilla extract.

Gradually add the wet ingredients to the dry ingredients, mixing until a dough forms.

Knead the dough on a lightly floured surface for about 5-7 minutes, or until it becomes smooth and elastic.

Place the dough in a greased bowl, cover it with a clean kitchen towel, and let it rise in a warm place for about 1 hour, or until it doubles in size.

Once the dough has risen, punch it down to release the air bubbles and divide it into equal portions.

Roll each portion into a rope about 10-12 inches long.

Twist each rope into a loose knot or braid, tucking the ends underneath.

Place the twisted donuts on a parchment-lined baking sheet, cover them with a kitchen towel, and let them rise for another 30-45 minutes.

In a large, deep skillet or Dutch oven, heat vegetable oil to 350°F (175°C).

Carefully place the twisted donuts in the hot oil, a few at a time, and fry them for 2-3 minutes per side, or until they are golden brown and cooked through.

Remove the donuts from the oil using a slotted spoon and place them on a paper towel-lined plate or wire rack to drain.

While the donuts are still warm, you can coat them in cinnamon sugar, dip them in glaze, or dust them with powdered sugar.

Serve the twisted donuts warm and enjoy!