Start by preheating your oven to 350°F (175°C). Grease your baking pan and line it with parchment paper for easy removal later. This small step makes a big difference when slicing the cake neatly.
In a large bowl, whisk together the sugar and eggs until the mixture becomes pale and slightly foamy. This helps create a light texture in the cake. Take your time here for the best results.
Now add the sour cream, melted butter, vanilla extract, and freshly grated nutmeg. Mix everything until smooth and well combined. The nutmeg is what gives the cake its signature donut-like flavor.
Add salt, baking powder, and baking soda into the mixture and stir gently. Then fold in the flour until just combined. Be careful not to overmix, as this can make the cake dense.
Pour the batter into the prepared pan and spread it evenly. Bake for about 25–30 minutes until a toothpick inserted in the center comes out clean. Avoid overbaking to keep the cake soft.
Let the cake cool slightly before removing it from the pan. While it’s still warm, brush the top with melted butter and generously dust powdered sugar over it. Add multiple layers for that classic donut finish.