In a large bowl, place the yeast, warm water and one teaspoon of the sugar and stir. Let sit 10 minutes, or until thick.

Add the remaining sugar, brown sugar, cinnamon, nutmeg, milk or soy milk, butter or margarine, egg, vanilla, salt and two cups of the flour and mix either with a wooden spoon or with a dough hook in a stand mixer on low speed. Make sure the butter or margarine is mixed in well and you do not see any big clumps.

Add half a cup of flour and mix in. Add another half a cup flour and mix in. If the dough remains sticky, add one or two more tablespoons flour, a little at a time, until the dough becomes smooth. Cover bowl with a clean dishtowel and let rise one hour in a warm place.

After the hour, punch down the dough by folding it over a few times, reshaping into a ball, and then re-cover and let rise 10 minutes.

Dust a cookie sheet with flour. Sprinkle some flour on the counter or on Gefen Parchment Paper and use a rolling pin to roll the dough out to half an inch thick.

Use a small round cookie cutter, one and a half inches wide, to cut out circles, very close to one other in the dough, and place them on the cookie sheet. Re-roll and cut scraps.

Cover the doughnuts with the towel. Place the cookie sheet back in the warm place. Let rise 45 minutes.

Heat one and a half inches of oil in a medium saucepan and use a candy thermometer to check when the oil stays between 365 and 370 degrees Fahrenheit for a few minutes. Adjust the flame to maintain that temperature range. Cover a cookie sheet with foil. Place a wire rack on top and set near the stovetop.

When the oil is ready, slide in the doughnuts top-side down into the oil and cook 45 to 60 seconds. You can cook up to eight at a time. Turn the doughnuts over and cook another 45 to 60 seconds, or until golden. Lift with a slotted spoon and place on the wire rack to cool. Repeat with the remaining doughnuts. Roll in sugar, if desired.

Place the sugar and water into a small or medium heavy saucepan over medium-high heat. Let cook without stirring until the sugar on the edges starts to brown; this takes a few minutes.

Once the sugar colors, stir with a wooden spoon or silicone spatula and cook until all of the sugar has melted and the mixture turns dark amber, stirring occasionally.

Turn heat to low, remove saucepan from heat and add the cream, butter and vanilla, and cinnamon, and whisk. The mixture will bubble up. Place the mixture back on the stove over medium-low heat and continue cooking, stirring constantly, for one minute. Pour into a bowl and let cool.