Abm beignets

1       c            Water
   1                    Egg
   2       tb           Oil
   3       tb           Nonfat Dry Milk Powder
     1/2   ts           Nutmeg
   1       t            Salt
   3 1/2   c            Bread flour
   2 1/2   ts           yeast
     1/2   c            Powdered Sugar

  Place all ingredients except sugar in machine.
  Program for knead and first rise and press start. The
  dough will be sticky at first but will hold its shape.
  After the final cycle, it will be workable. When dough
  is finished, turn the dough out onto a floured surface
  and let it rest for 10 minutes. Roll the dough to a
  generous 1/4" thick and cut it into 2" squares.
  
  Cover the squares with a clean towel and let rise for
  30 minutes. Add the powdered sugar to a medium-size
  clean paper bag.  Lay out paper towels to drain the
  doughnuts. Heat 1 to 1 1/2 " of oil to 375øF.  Do not
  add too many; add once or it may cool the oil too
  much.  Gently brush the uncooked squares to remove any
  extra flour. Slide them into the heated oil. When they
  pop to the surface, spoon the hot oil over them
  constantly until they are puffed. Turn the squares and
  cook until they are a light golden color on both
  sides. It should take 1 to 2 minutes. Cut the first
  couple of squares in half to be sure there is not
  sticky uncooked dough inside.
  
  Remove from hot oil with slotted spoon and drain on
  paper towels. While warm, drop them, 3 or 4 at a time,
  into the bag with powdered sugar and shake until they
  are well coated. Serve immediately. Source: Desserts
  from your Bread Machine Typed by Meg Antczak, Fido
  Format by Katherine Smith