In a large bowl, whisk together the flour, baking powder, sugar, salt, and nutmeg.

Rub the cold cubed butter into the flour mixture using your fingertips until the texture resembles coarse crumbs.

Gradually pour in the coconut milk and vanilla extract, stirring gently with a fork until a soft dough forms.

Turn the dough out onto a lightly floured surface and knead gently for about 30 seconds until smooth, then let it rest covered for 10 minutes.

Divide the dough into 12 equal pieces and roll each piece into a smooth ball, flattening slightly with your palm.

Heat the vegetable oil in a deep frying pan or pot to 350°F (175°C); the oil should be about 1 inch deep.

Carefully place the dumplings into the hot oil in batches, frying for 4-5 minutes on each side until they are golden brown and cooked through.

Remove the dumplings with a slotted spoon and drain on paper towels before serving warm.