Heat oven to 375 degrees. Spray mini muffin tins with cooking spray.
In electric mixer, beat together sugar, butter and nutmeg until incorporated. Stir in milk. Add flour and baking powder until combined.
Pour into mini muffin tin, filling just halfway. Bake for 15 minutes. Remove donuts to cooling rack to cool.
Mix together powdered sugar, milk and strawberry extract for glaze. Add milk as needed. Dip each donut bite into glaze to cover. (If glaze is thin, you may want to double dip.) Let drip-dry on cooling rack or immediately roll in coconut and then place on cookie sheet.