Heat oil in deep-fryer to 375 degrees F (190 degrees C).
In a large bowl, mix flour, 1/3 cup sugar, baking powder, salt, mace and 1/2 teaspoon cinnamon. Create a well in the center of the mixture, and pour in milk, canola oil and egg. Thoroughly stir into the mixture.
In batches, drop the mixture by rounded teaspoonfuls into the hot oil. Fry on all sides, 2 to 4 minutes, until golden brown. Drain on paper towels.
In a resealable plastic bag, mix 1 cup sugar and 1 teaspoon cinnamon. While still warm, place balls a few at a time into the bag, and toss to coat.