In a medium bowl, combine the warm water with the yeast and 1 teaspoon of sugar. Stir and allow the mixture to sit for 5 to 10 minutes, or until foamy. This indicates that the yeast is active.

In a large mixing bowl, add the flour, remaining sugar, grated nutmeg, and salt. Pour in the activated yeast mixture and stir well until a sticky, wet dough forms. If the mixture appears too dry, gradually add more warm water, one tablespoon at a time, until the consistency is soft and scoopable.

Cover the bowl with a clean kitchen towel or plastic wrap. Place it in a warm, draft-free location and allow the dough to rise for approximately 1 hour, or until doubled in size and bubbly in appearance.

In a deep, heavy-bottomed pot, pour in enough vegetable oil to reach a depth of at least 3 inches. Heat the oil over medium heat (about 350°F or 175°C). This may take 8–10 minutes. To test the temperature without a thermometer, drop a small portion of dough into the oil—it should sizzle and rise to the surface.

Using two spoons or your hand, gently drop small portions of the dough into the hot oil. Fry in batches to avoid overcrowding. Use a slotted spoon or spider to rotate each puff until golden brown on all sides. Frying should take approximately 3 to 5 minutes per batch.

Remove the fried puff puffs and place them on a paper towel-lined plate to drain any excess oil. Dust with powdered sugar, if desired, or serve with pepper sauce for a savory contrast. Best enjoyed warm.