For croutons, melt butter in small skillet; brown bread cubes. Set aside. , In a saucepan, boil potatoes in water to cover until tender. Cool; rice potatoes and place in a large bowl. Add the flour, baking powder, salt and nutmeg. Stir in eggs; beat until mixture holds it shape. , With lightly floured hands, shape about 2 tablespoons dough into a ball, placing a few croutons in center of each ball. Repeat with remaining dough and croutons. Refrigerate for 1 hour. , Drop dumplings into boiling salted water (2 teaspoons salt to 1 quart water). Simmer, uncovered, for 10 minutes. Drain. Melt butter in a small skillet; cook and stir the bread crumbs until lightly browned. Sprinkle over dumplings.