Combine potatoes, boiling water, honey, dry milk and butter in a mixing bowl, stirring well. Let cool to lukewarm
In a small bowl combine yeast and warm water and allow to proof 10 minutes. Add to lukewarm potato mixture
Beat in 2 cups flour until smooth. Blend in eggs, salt, vanilla, lemon zest and orange peel. Gradually add in enough flour to make a workable dough
Turn dough out onto a floured surface and knead until smooth and elastic
Place in a greased bowl, turning to coat, cover and let rise to double in bulk, about 90 minutes
Punch down and knead lightly. Divide dough in half and shape into two round loaves. Place on greased baking sheet, cover and let rise until doubled in bulk, about 45 minutes. Preheat oven to 350 degree F
Brush with remaining egg and sprinkle with nutmeg. Bake for 30 minutes then let cool on wire racks.