Step 1

First, in a small saucepan, add the butter and turn the heat to medium. It will begin to crackle and pop as it melts. Keep an eye on it. When the popping noises start to slow down, tilt the pan to gently swirl the butter. Keep an eye on it very closely, but keep cooking it until it smells nutty and brown bits appear in the butter.

Step 2

We only need 2 tablespoons of butter for the recipe, so measure out 2 tablespoons and use the small remaining amount for something else.

Step 3

Next, preheat the oven to 350, and grease a donut pan with 6 spaces very well with oil.

Step 4

In a medium bowl, whisk together the flour, baking powder, baking soda, salt, nutmeg, and sugar.

Step 5

In a small dish, stir together the egg, buttermilk, vanilla, and 2 tablespoons of the browned butter.

Step 6

Add the wet ingredients to the dry, and stir until well-blended, but do not over-mix.

Step 7

Divide the batter between the spaces on the donut pan, and bake for 8-10 minutes. The donuts will feel springy and a toothpick inserted will come out clean.

Step 8

Let the donuts cool in the pan for a few minutes before removing them.

Step 9

Meanwhile, melt the caramel bits with 1 tablespoon of water in the microwave for about 25 seconds. Stop, stir and heat for 15 seconds, or until totally smooth and melted. Stir in the cream to thin out the caramel (oh, the irony!).

Step 10

Using a wooden utensil, run it around the edge of each donut in the pan, and pop each doughnut out onto a wire cooling rack.

Step 11

Whisk together the cinnamon and powdered sugar into a shallow bowl, and set aside.

Step 12

Dunk each doughnut in the caramel glaze, followed by the cinnamon-powdered sugar.

Step 13

Sprinkle more cinnamon-powdered sugar on top before serving.