On a shallow plate, whisk together sugar and cinnamon for coating. Prepare a baking sheet lined with paper towels. Set aside.
In a small bowl, whisk together flour, sugar, cinnamon, nutmeg and salt. Set aside.
In a medium size saucepan heat together water, milk, butter and sugar. Bring to a boil over medium heat, stirring until sugar dissolves.
Remove from heat, add vanilla, mix well. Add sifted dry ingredients. Mix using a wooden spoon until incorporated. Return to burner on medium and stir vigorously with a wooden spoon until the flour begins to pull away from the sides and forms a film on the bottom of the saucepan. The dough should form a ball.
Scrape into a mixing bowl. Using an electric mixer, beat the dough for 1 minute on medium speed to cool slightly before adding eggs one at a time. Stop after each egg to scrape the sides of the bowl. The dough may separate after adding each egg, but will come together when beaten.
Mix until the dough is smooth and glossy and the eggs are completely incorporated. Let stand for 5-10 minutes to cool slightly.
Meanwhile, heat 3 inches of oil in a deep pot to 350-360°F.
Using a piping bag fitted with a large open star tip, pipe 4 inch lengths of dough into oil. Use scissors sprayed with cooking spray or oiled to cut the dough from the pastry tip. Fry in batches, about 4 at a time for 2-3 minutes total or until lightly golden. (i.e. 1M Wilton open star tip)
Remove with a slotted spoon to paper towels, them immediately roll in cinnamon sugar coating.
Serve with warm fudge sauce and dulce de leche or caramel sauce for dipping.