In a bowl, cream butter and sugar together. Beat in whole eggs and yolks, until mixture is a uniform pale colour. Stir in lemon zest, milk and vanilla.
In another bowl, sift flour, baking powder, salt and nutmeg together. Stir dry ingredients into egg mixture.
Cover dough and refrigerate for 15 minutes.
On a floured surface, roll out dough 1/4-in. (3/4-cm) thick, cut out doughnuts and fry in hot oil (375°F/190°C).
Roll in icing sugar, cinnamon sugar or honey.
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