Baked Cinnamon Sugar Dpughnuts

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INGREDIENTS
These doughnuts will mostly rise in the oven - no need to rise for more than 30 minutes on the counter!
Difficulty...Intermediate
Yield...1 dozen
Prep Time...15 minutes
Rise Time ...1 hour, 15 minutes
Bake Time....10 to 15 minutes
Ingredients
1/3 cup milk
1/3 cup water
1 envelope Fleischmann's® Active Dry Yeast
2 to 3 cups all-purpose flour
3 tablespoons sugar
1 teaspoon freshly grated lemon peel
1/2 teaspoon salt
1/4 teaspoon Spice Islands® Ground Nutmeg
3 tablespoons butter OR margarine, softened
1 egg
1/2 cup butter OR margarine, melted
1/2 cup sugar
2 teaspoons Spice Islands® Ground Saigon Cinnamon
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