1. Preheat the oven to 400 degrees. Line a baking tray with foil, place bacon on the foil. Cook for 15-20 minutes or until crispy.
  2. While the bacon cooks, sift the cake flour, baking powder, salt and nutmeg into a bowl.
  3. In a separate bowl, combine the butter and sugar until it is a sandy consistency. Add in the egg yolks one at a time and mix until the mixture is thick. Add the dry mixture into the bowl in 3 parts. Alternate with the sour cream. The dough should be sticky. Cover and chill for 1 hour.
  4. When the bacon is done, chop.
  5. Pour oil into a deep pot or use a table top fryer. Heat to 325 degrees. While the oil heats, flour a surface. Roll out the dough to ½ inch. Use a donut cutter or biscuit cutter to cut out as many donuts as possible. When the oil is heated, place a few donuts in at a time and fry each side for about 2 minutes. Place onto a paper towel or bag and drain the excess oil off.
  6. In a small bowl, combine powdered sugar, maple syrup, salt, vanilla extract, and water. Place each donut into the mixture and then place on a rack to catch excess glaze. Immediately top with bacon before the glaze hardens. Let sit for 10 minutes until the glaze is set.
  7. Serve.