Heat fat or oil (3 to 4 inches) to 375Â° in deep fat fryer or kettle.
Measure flour, 1/4 cup sugar, the baking powder, salt and nutmeg into bowl.
Add oil, milk and egg; beat until smooth.
Drop batter by teaspoonfuls (too large puffs will not cook through) into hot fat.
Fry four or five at a time about 3 minutes or until golden brown on both sides.
Stir together 1/2 cup sugar and the cinnamon.
Roll warm puffs in sugar-cinnamon mixture.