In a stock pot, 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 dry ingredients: flour, salt, baking powder, sugar, and nutmeg.
In a medium mixing bowl, whisk eggs until foamy. Add in wet ingredients: 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. If the oil maintains a temperature of 375°F, the funnel cake bites should cook in less than a minute.
Place cooked funnel cake bites on paper towels to absorb excess oil.
Sprinkle cooled funnel cake bites with powdered sugar and serve immediately.