Preheat oven to 425º F.
Lightly oil a donut pan with coconut oil.In a large bowl, sift together flour, sugar, baking powder, nutmeg, and salt. Add applesauce, eggs, coconut oil.
Beat until combined if batter is too thick slowly add milk until desired consistency is reached.Fill each donut cavity about 2/3 of the way *these donuts will rise & over filling will cause donuts to be under cooked.
Bake 10-13 minutes, or until the tops of the donuts are lightly golden. Let donuts fully cool in pan before removing or donuts will break.
Combine cinnamon & sugar in a tupperware with lid or zip-lock bag. Add two donuts to cinnamon sugar mixture and toss to coat in mixture.
Optional to glaze with yogurt and sprinkles.