Step 1: Reduce the Apple Cider Pour 1 cup of apple cider into a small saucepan over medium heat. Simmer for about 10-12 minutes until it has reduced to exactly ½ cup. This concentrates the flavor. Let it cool completely before using.
Step 2: Oven and Pan Preparation Preheat your oven to 350°F (175°C). Lightly grease a mini muffin tin or a donut hole pan with non-stick cooking spray or a bit of melted butter to ensure easy removal.
Step 3: Mix the Dry Ingredients In a large mixing bowl, whisk together the flour, baking powder, baking soda, cinnamon, nutmeg, and salt. Make sure there are no large lumps in the flour for a smooth batter.
Step 4: Whisk the Wet Ingredients In a separate medium bowl, whisk together the melted butter, granulated sugar, and brown sugar. Add the egg, milk, and the cooled, reduced apple cider. Whisk until the mixture is well combined and smooth.
Step 5: Combine the Batter Pour the wet ingredients into the dry ingredients. Use a spatula to gently fold the mixture together until just combined. Be careful not to overmix, as this can make the donut holes tough.
Step 6: Bake the Donut Holes Spoon the batter into the prepared tin, filling each cavity about ¾ of the way full. Bake for 10 to 12 minutes, or until a toothpick inserted into the center comes out clean. Let them cool in the pan for 5 minutes.
Step 7: The Caramel Coating Warm the caramel sauce slightly so it is thin. Dip each warm donut hole into the caramel sauce, then immediately roll it in the cinnamon sugar mixture until evenly coated. Serve warm.