Prepare the yeast mixture by combining the warm water, sugar, and yeast. Let it bloom for 5 to 10 minutes.

In a large bowl, combine the all-purpose flour, sugar, nutmeg powder, and salt. Mix well.

Add the evaporated milk, egg, and bloomed yeast mixture. Mix until combined.

Add the softened butter and continue mixing.

Knead the dough by hand for about 10 to 15 minutes or until smooth and elastic.

Grease the dough with cooking oil. Transfer the dough into a bowl. Cover and let it rise for 1 to 2 hours or until doubled in size.

Transfer the dough onto a lightly floured surface. Flatten it to approximately 13 x 17 inches.

Cut using a donut cutter. If you don't have one, use a large round cutter and a smaller round cutter for the center hole. Gather the remaining dough, flatten again, and repeat until all dough has been used. Alternatively, shape the remaining dough into mini donut balls weighing approximately 30 grams each.

Place the shaped donuts on small pieces of baking paper or parchment paper.

Cover and let them rise for 45 to 60 minutes or until puffy and almost doubled in size.

Heat enough cooking oil in a pan over low to medium-low heat. Once the oil is hot, carefully fry the donuts until lightly golden brown on both sides. Drain on a wire rack.

Allow the donuts to cool completely.

Prepare the glaze by combining the sifted powdered sugar, sifted cocoa powder, evaporated milk, and melted butter. Mix until smooth.

Dip each donut into the chocolate glaze. Top with ground peanuts or vermicelli candy if desired.

Serve and enjoy!