Stir together the flour, sugar, baking powder, nutmeg, and salt in a large bowl.
Cut in the butter with a pastry blender or 2 butter knives until it is the size of peas.
Add the currants.
Beat the egg and milk together with a fork and add them to the dry ingredients.
Mix just enough to form the dough into a ball.
Turn the dough out onto a lightly floured work surface and pat or roll it into a thick disk that is about 9 inches (23cm) in diameter and just under a ½-inch thick (1cm).
Cut out small circles (1½-inch diameter), but you can also make them a bit larger if you don't have a small cookie cutter.
Heat a heavy skillet over medium-low heat and lightly grease it (with cooking oil spray or oil).
Arrange the cookies in the skillet with a little bit of space between them (you will have to do them in 2 batches or use 2 skillets).
Cook them for 10 minutes on each side, until they are a light brown colour. Readjust the heat level if needed to make sure they cook slowly enough to be nicely browned on one side after 10 minutes. Flip them with a small spatula or offset spatula and cook them for 10 minutes on the second side. If some of them are lighter than others, you can flip them over again to cook them some more on the lighter side.
Set the cookies onto a rack to cool. They are delicious when freshly cooked, but will keep well in a covered container at room temperature for up to a week.
Makes 36 small (1½-inch.3.8cm) cookies (or fewer cookies if larger).
Notes
Welsh Cakes can be made a little bigger (2-2½ inches/7-8cm) if desired. They are best eaten fresh.Chopped raisins can be substituted for the currants.