Hi Shirley,
I have my Mom's Searchlight from 1938 and found this recipe for drop donuts. I hope it is the same one you are looking for.

DROP DONUTS

2 cups sour milk
1tsp baking soda
1 egg well beaten
2Tbsps melted shortening
2 cups Flour
1/2 tsp nutmeg
1/2 tsp cinnamon
1 cup sugar
1/2 tsp. salt

Sift 2 cups flour, measure and sift with baking soda, salt, cinnamon and nutmeg.

Combine shortening, egg, sugar and milk. Add sifted dry ingredients and sufficient additional flour to make a stiff drop batter.

Drop by teaspoonsful into deep fat (365 degrees F) Fry until brown. Drain on crumpled absorbent paper. Sprinkle with sugar.