Heat oil (2 to 3 inches) in Dutch oven to 375F. Mix flour, sugar, salt, baking powder, nutmeg and baking soda in large bowl. Add oil, buttermilk and egg; beat with fork until smooth. Drop batter by teaspoonfuls (do not make too large or they will not cook through) into hot oil. Fry about 3 minutes or until golden brown on both sides; drain on paper towels. Immediately roll in sugar.