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In a large mixing bowl, stir together 1 1/2 cups flour, yeast, nutmeg and orange peel. In a small saucepan heat and stir milk, granulated sugar, orange juice, shortening and salt just until warm (120°F to 130°F) and shortening almost melts.
Add milk mixture to the flour mixture. Add egg. Beat with an electric mixer on low for 30 seconds, scraping sides of bowl constantly. Beat on high for 3 minutes. Using a wooden spoon, stir in enough of the remaining flour to make a soft dough.
Place dough in a greased bowl, turning once to grease surface of the dough. Cover and chill for 4 to 24 hours.
Turn dough out onto a lightly floured surface. Cover; let rest for 10 minutes. Roll dough into a 14x12-inch rectangle. Cut rectangle crosswise into five strips. Cut each strip crosswise into eight 1 1/2-inch-wide rectangles, making 40 rectangles total. Cover; let stand for 20 minutes (dough will not double).
In a deep saucepan heat 3 inches of oil to 375°F. Fry a few dough rectangles at a time in hot oil about 1 minute or until golden, turning once. Remove with a slotted spoon and drain on paper towels. Keep warm in a 200°F oven while frying the remaining beignets.
Fill a pastry bag fitted with a small round tip with chocolate-hazelnut spread. Poke a small hole in one end of each beignet; insert tip of pastry bag. Squeeze to fill with 1 to 2 teaspoons of the spread. If desired, sprinkle beignets generously with powdered sugar.