Add lemon juice to milk (buttermilk substitute).
Preheat oven to 425
Grease Donut pan
Combine flour, sugar, baking powder, nutmeg, cinnamon and salt in large bowl.
Add buttermilk, eggs and butter.
Stir just until well mixed.
Fold in shredded apples.
Fill each ring about 2/3 but make sure it doesn't top center hole.
Bake about 8 minutes, until tops rebound when pressed.
Leave donut in pan for about 5 minutes.
Remove from pan and set on cooling rack.
Unwrap caramels and place in small sauce pan.
Add milk and heat over low heat stirring frequently until melted.
Allow to cool until warm.
Dip cooled donuts in caramel and place on rack.
Sprinkle top with chopped nuts.
Wait for glaze to set.