Baked cinnamon-sugar donuts

Baked cinnamon-sugar donuts was pinched from <a href="http://www.ohsoshabbybydebbie.com/recipe/" target="_blank">www.ohsoshabbybydebbie.com.</a>
INGREDIENTS
1 1/3 cup warm milk (between 95-105°), divided
1 packet active dry yeast (2 1/4 teaspoons)
2 tablespoons butter
2/3 cup sugar
2 eggs
5 cups all-purpose flour
Two pinches of nutmeg, freshly grated
1 teaspoon vanilla extract
1 teaspoon salt
1/2 cup unsalted butter, melted
1 1/2 cups sugar
1 tablespoon cinnamon
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