Dissolve yeast in half a cup of warm milk. Sprinkle with a small amount of sugar. Set aside to bloom.
In a mixer bowl, pour in the rest of the milk, sugar, salt, nutmeg, egg, vanilla and half of the softened butter.
Mix in low speed to blend together wet ingredients. Add in 1 cup of bread flour, and then pour in the yeast mixture. Add in the remaining bread flour and ½ cup of All-Purpose Flour.
Continue kneading until dough forms into a ball, slowly add in the remaining butter.
Continue kneading until dough is smooth and elastic. Place on a greased bowl to proof.
Once the dough doubles in size, punch down the dough. Divide into 20-24 portions. Then divide each portion into two, roll into logs, twist to logs together, pinch the ends together.
Cover and let rise. Once the dough doubles in size, fry in heated oil until golden brown.
Place over paper towels to drain off excess oil.
Dust with cinnamon sugar or dip in chocolate. Serve.