Dissolve the yeast and 2 tablespoons white sugar in the warm milk.
Sift flour into a large bowl. Make a well in the center and add the yeast mixture, egg yolks, salt, nutmeg, butter, and remaining sugar. Stir flour into center. Once combined turn dough out onto a lightly floured surface knead until dough is elastic. Cover and let dough rise overnight in the refrigerator.
Remove dough from the refrigerator and roll on a lightly floured surface to 1/8 to 1/4 inch thick. Cut into 2-inch rounds. Cover and let rise for about 15 to 20 minutes.
In a medium bowl combine the cottage cheese, egg, 3 tablespoons white sugar, and vanilla. Beat until well combined.
Form dough rounds into a ball and insert about 2 teaspoons of cheese filling into each of the rounds.
In a heavy pot, pour in oil to about the 2 1/2 inch mark. Heat to 375 degrees F (190 degrees C). Drop sufganiot (doughnuts) into the oil in batches, turning when browned. Drain on paper towels and roll in confectioners’ sugar.