In a large bowl dissolve yeast in warm water, let stand for 5 minutes.
Add sugar, applesauce, melted butter, cinnamon, nutmeg, salt, eggs and 3 cups of the flour. Beat at low speed of an electric mixer until moistened, then beat at medium speed for an additional 2 minutes.
Stir in 2 cups or more of flour, 1/2 cup at a time, to form a soft dough. Turn out onto a well-floured surface. Knead until smooth and elastic (about 5 minutes); add enough remaining flour, 1 tablespoon at a time, to prevent dough from sticking to hands.
Place dough in a bowl coated with cooking spray, turning to coat top. Cover and let rise in a warm place, free from drafts, 1 hour or until doubled in bulk.
Punch dough down, and turn out onto a lightly floured surface.
Roll dough to 1/2-inch thickness; cut with a lightly floured 2 1/2-inch doughnut cutter.
Combine doughnut holes and any remaining scraps of dough; reroll to 1/2-inch thickness and cut as before.
Place doughnuts on greased baking sheets; brush tops of doughnuts with the 1/2 cup melted butter. Let rise, uncovered, in a warm, draft-free place for 40 minutes.
Combine 1/2 cup sugar and 1 teaspoon cinnamon in a large zip-top heavy-duty plastic bag, and set aside.
Bake doughnuts at 425 degrees F for 8 minutes or until golden.
Immediately brush
remaining melted butter over baked doughnuts; add doughnuts to plastic bag. Seal the bag and shake to coat.