1 cup warm milk (110 degrees F/45 degrees C)
1/3 cup water
1 egg, beaten
3 tablespoons margarine, melted
3/4 cup white sugar
4 1/2 cups bread flour
1 teaspoon salt
1 1/2 teaspoons ground nutmeg
1 tablespoon active dry yeast
3/4 cup any flavor fruit jam
2 quarts vegetable oil for frying
1 In a bread machine pan add the milk, water, beaten egg, melted butter, sugar, bread flour, salt, nutmeg, and yeast in the order recommended by the manufacturer. Set machine to the sweet dough cycle.
2 Once cycle is completed, turn dough out onto a floured board and let rest for ten minutes.
3 Roll dough out to 1/4 inch thickness. With floured cookie cutter, cut into 2 1/2 inch rounds.
4 Place 1/2 teaspoon jam or jelly in center of half of the rounds. Moisten edges with cold water; top with the remaining rounds, pinch edges together firmly. Place sealed doughnuts on an greased baking sheet. Cover and let rise until doubled in a warm place, about 45 minutes.
5 Heat oil in deep fryer to 375 degrees F (175 degrees C). Fry one layer of doughnuts at a time. Turn doughnuts as they rise to the surface until golden brown, about 2 to 3 minutes. Remove from oil, being careful not to poke doughnuts. Drain onto paper towels.