Homemade Melt-in-Your-Mouth Doughnuts

2 cups scalded milk
1/2 cup butter
2/3 cup sugar, divided
1 teaspoon salt
2 tablespoons yeast
4 eggs (beaten)
1/4 teaspoon nutmeg
7 cups sifted flour

Glaze:
3 cups powdered sugar
1/2 teaspoon salt
1/2 teaspoon vanilla
1/2 cup cold water

1. Mix together ingredients for glaze.
2. Melt butter in hot milk, add 1 tsp sugar and salt. Allow to cool.
3. Beat in yeast, nutmeg, eggs, remaining sugar, and 3 cups flour.
4. Add rest of flour (dough will be sticky).
5. Knead for 5 minutes then allow to rise for 1-1 1/2 hours.
6. Roll out dough, cut into shapes.
7. Allow to rise for 30-45 minutes.
8. Heat oil to 365° and fry 1 - 2 minutes on each side or until brown.
9. Dip in glaze