Preheat the oven to 350 degrees. Spray donut pans with cooking spray.
In a large bowl, stir together the flour, 1 1/2 cups sugar, baking powder, 1 t. cinnamon, nutmeg and salt.
In a small bowl, whisk together the egg, milk, 2 T. melted butter and vanilla. Pour the wet ingredients into the dry ingredients and stir until just combined.
Spoon batter into the donut pans, filling each one a little more than 3/4 full. Bake for 17 minutes until a toothpick inserted comes out clean.
While donuts are baking, melt the 8 T. butter in a small saute pan. Combine 1 c. sugar and 1 t. cinnamon in a small bowl.
Remove donuts from oven and cool for 5 minutes. Tap them out onto a sheet pan.
Dip the donuts in the butter and then in the cinnamon sugar.