Sift flour, nutmeg and seas salt together in a large bowl, or in the bowl of an electric mixer.
Place ½ cup of the milk in another bowl and stir in the yeast. Set aside.
Stir in the butter and sugar into the remaining cup of warm milk and add it to the yeast mixture.
Whisk in the eggs using a fork and add the wet mixture to the dry ingredients.
Mix until the flour has taken up the yeast mixture.
If your dough is too dry add a little bit of milk at a time. If your dough is too sticky, then add a little bit of flour, until the dough becomes smooth enough to handle without sticking too much to your hands.
Turn dough out onto a lightly floured surface and knead for two minutes.
Shape into a ball and place into a lightly oiled or buttered bowl. Cover the bowl with plastic wrap and allow the dough to rise in a warm area away from drafts.
Allow an hour or so for the dough to double I size, depending on the temperature.
Prepare 5 baking trays with parchment paper.
When the dough has risen, remove the dough from the bowl and punch down. Roll it out on a lightly floured surface to about ½-inch thickness.
Using your cutter cut out donuts. Cut the outer circle first, then transfer to lined baking trays and then cut out the donut holes (smaller circle)**.
Cover trays with a clean cloth and allow to rise for another 45 minutes.
Preheat your oven to 180ºC.
Bake the donuts for about 8 minutes; do not allow them to get brown.
While donuts are baking, set up your butter and combine sugar and cinnamon in another bowl.
Remove donuts from oven and allow to cool for 3 minutes.
Dip each donut into the melted butter and give it a quick toss in the cinnamon sugar.
*Make sure not to over heat the milk, the temperature should be just tepid so as not to kill the yeast.
**Ensure that the holes are at least 2cm in diameter as that the holes will close more after rising and baking.