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Baked Doughnuts

5 Cups Flour - divided
2/3 Cup Sugar
2 Packages Active Dry Yeast
1 teas. Salt
1 teas. Lemon Peel - grated
1/2 teas. Watkins Nutmeg
2 Cups Milk - divided
1/2 Cup Butter or Margarine
2 Eggs
2 Cups Powdered Sugar - sifted
1/2 teas. Watkins Cinnamon

Combine 2 cups flour, sugar, yeast, salt, lemon peel and nutmeg in large bowl. Combine 1-3/4 cups milk and butter in 1 quart saucepan. Heat over low heat until mixture is 120-130*. (Butter does not need to completely melt). Gradually beat milk mixture into flour mixture with electric mixer at low speed. Increase speed to medium; beat 2 minutes scraping down side of bowl once. Beat in eggs and 1 cup flour at low speed. Increase speed to medium; beat 2 minutes, scraping down side of bowl once. Stir in enough additional flour, about 2 cups with wooden spoon to make soft dough. Cover with greased plastic wrap; refrigerate at least 2 hours or up to 24 hours. Punch down dough. Turn out dough onto lightly floured surface. Knead dough about 1 minute or until dough is no longer sticky, adding remaining 1/2 cup flour to prevent sticking if necessary.

Grease 2 large baking sheets. Roll out dough to 1/2 inch thickness with lightly floured rolling pin. Cut dough with floured 2-3/4 inch doughnut cutter. Re-roll scraps reserving doughnut holes. Place doughnuts and holes 2 inches apart on prepared baking sheets. Cover with towels; let rise in warm place about 30 minutes or until doubled in bulk. To prepare glaze, combine powdered sugar and cinnamon in small bowl. Stir in enough remaining milk, about 1/4 cup to thin glaze to desired consistency. Cover and set aside. Preheat oven to 400*. Place pieces of waxed paper under wire racks to keep counter clean. Bake doughnuts and holes 8-10 minutes or until golden brown. Remove from pan with spatula; cool on wire racks 5 minutes. Dip warm doughnuts into glaze. Place right side up on racks, allowing glaze to drip down sides. These are best when served warm.

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