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In a large mixing bowl, cream the butter and sugar by beating vigoursly with a sturdy spoon or a large fork until mixture is light and creamy. (Butter should be near room temperature before you begin.) Add eggs one at a time, beating well after each is put in.
In a seperate bowl, sift flour with baking powder, salt and nutmeg, and stir in orange rind. Gradually add flour mixture to the first bowl, beating all the while. Use just enough flour to make a stiff dough that pulls away from the side of the bowl that isn't too sticky. Turn out onto a lightly floured surface and knead for 5 to 10 minutes until smooth. (knead by pushing heels of hands down into the dough ball, then folding in the sides to re-form the ball. Repeat.)
Roll dough out to a thickness of about 1/4 inch, and cut into rectangular strips about 5 inches long and 2 inches wide. Cut a 2-inch long slit in the center of one half of each strip, and pull the other end part way through to form a loop. Then fry, 2 or 3 at a time, in deep fat, until golden brown. Lay on a clean, absorbent clothes to drain. Serve hot.