Preheat the oven to 425 degrees F and grease your donut pans.
In a large bowl, stir together butter and oil.
Then add sugar and whisk until combined.
Then add milk, eggs, vanilla and whisk until combined.
Stir in carrots.
Add flour, baking powder, cinnamon, salt, baking soda and nutmeg and stir until combined.
Pipe batter into prepared pans, about ¾ full. Don't have a pipping bag simply put the batter into a large zip lock bag and cut a small hole in the bag.
Bake for 6-8 minutes, until a toothpick inserted in the center comes out clean.
Let cool for 5 minutes in the pan then transfer to a wire rack to cool completely.