Using a deep (at least 2½”) skillet, add enough oil to fill skillet 1” deep. Insert a candy thermometer and heat oil over medium-high heat. (Note: Target oil temperature for frying will be 350°F.)

Using a medium mixing bowl, add flour, sugar, salt, nutmeg, cinnamon and baking powder; stir until well combined.

In a separate bowl, whisk together egg, melted butter and milk. Pour liquid mixture into bowl with dry ingredients; stir until well combined. (Note: The dough will be thick and somewhat sticky.)

Using a cookie scoop or 2 spoons, drop 8-9 (½”-¾” balls) of batter into hot (350°F) oil. Fry donut holes for 1-2 minutes, turning once, or until both sides are deep golden brown in color.

Transfer donut holes to a paper-towel lined plate to cool.

While donut holes are cooling, make the icing by combining the powdered sugar, milk and vanilla until smooth. (Note: Start with 1 Tbsp of milk and gradually add more until icing reaches desired consistency.)

Once cool, drizzle donut holes with icing and then sprinkle tops with colored sanding sugar. (Tip: I used a sandwich bag with one corner snipped off to drizzle the icing.)