In a stockpot, Dutch oven, or 12-inch frying pan, add shortening or oil at least 3 inches deep.
Affix the pot with a food thermometer and begin heating the oil over medium-high heat. You will need the oil to reach and maintain a temperature of 375°F for frying the funnel cake bites.
While the oil is heating, whisk together flour, salt, baking powder, sugar, and nutmeg.
In a medium mixing bowl, whisk eggs until foamy.
Add in cream, milk, vanilla extract, butter, and oil.
Add dry ingredients to the wet ingredients and stir together until batter is combined.
Use a ladle to dollop a tablespoon or two of batter into the heated oil. The batter will puff up immediately and begin to brown on the bottom. As soon as the bottom of the batter ball is golden brown, flip it over and brown on the other side.
Remove from the oil using a slotted spoon to drain off any excess oil.
Place cooked funnel cake bites on paper towels to absorb excess oil.
Sprinkle cooled funnel cake bites with powdered sugar and serve immediately.
It is important to make sure you have enough oil to submerge the bites.
Adding too much batter to the pan at once can cause the temperature of the oil to drop rapidly. The funnel cake bites will take longer to cook and will absorb too much oil in the process. Be sure to monitor the oil to ensure it stays at the right temperature continuously while cooking.
If the oil maintains a temperature of 375°F, the funnel cake bites should cook in less than a minute.
As you are frying up your bites, be sure to pick out any pieces of batter that have fallen off into the oil. They will burn and make the bites taste burnt.