Directions

1. TO MAKE THE GLAZE: Whisk together the powdered sugar, vanilla, and 2 tablespoons milk or water. Slowly add last 1/2 tablespoon liquid until you reach the correct consistency for pouring. If too thick, add a few more drops of liquid; if too thin, add powdered sugar one tablespoon at a time, until desired consistency is reached. Set aside.
   

2. TO MAKE THE DONUTS: In the bowl of an electric stand mixer with paddle attachment, add 1 cup of the flour along with the sugar, baking powder, baking soda, salt, and nutmeg. Mix together.
   

3. In a separate small bowl, whisk together sour cream, butter, and eggs. Pour this into the mixer bowl with dry ingredients and mix on medium speed for about 30 seconds. With speed on low, gradually mix in the remaining flour a little at a time. (Add more or less flour as necessary to make a soft dough that is moist and slightly tacky.) Cover bowl with plastic wrap for 1 hour or longer.
   

4. While dough rests, line a 12 x 18-inch pan with parchment paper and lightly sprinkle with extra flour. Set aside to put raw donuts on later. Pour oil into deep fryer or Dutch oven and heat to 375°. Have two wire racks handy, one covered with paper towels, to put fried donuts on.

   
   

5. To cut out the donuts, first spray a 12 x 18-inch piece of parchment paper with non-stick cooking spray. Put dough on center of paper, cover with another piece of sprayed parchment paper and use a rolling pin or your hands to flatten dough into a 1-inch-thick rectangle. Remove top paper. With a well-floured donut cutter or 2 biscuit cutters (large and small), cut out donuts and donut holes. Lightly flour the cut donuts to make them easier to handle, and then place them on prepared pan. Gather any scraps of dough and press them together into 1-inch-thick sheet to cut more donuts. Repeat process until all dough is used.
   

6. To get the iconic lift and shape in the center of the old-fashioned donut, dip in flour a round cutter that fits inside the margins of the cut donut; press cutter down lightly into donut, only about 1/4-inch deep. Do NOT cut all the way through. Now they are ready to fry.

   
   

7. Fry a few at a time, without crowding them in the pan, for about 45 to 60 seconds on one side, then flip and fry for at least 30 more seconds; continue to flip donuts at 30 second intervals for about 3 minutes total, until golden brown on both sides. Remove from oil and place on plain wire rack for a minute or two to drain, then move to rack covered with paper towels to cool, until ready to glaze or eat.
   

8. TO GLAZE: Transfer glaze to a wide, low bowl, just large enough to dip donuts. Dip one side of donut about 1/4-inch deep into glaze. Lift donut out, holding glaze-side down to let excess drip off. For larger amount of glaze on donut, turn glaze-side up after dipping and swirl donut until glaze sets.