In a small bowl, combine milk, boiling water, 1 teaspoon of sugar, and the yeast. Stir gently, then let it sit for about 5–10 minutes until the mixture becomes frothy. This means your yeast is active and ready to go.
Step 2: Prepare the Dough
In a large mixing bowl, whisk together the flour, remaining sugar, and salt. Add the butter and use your fingertips or a pastry cutter to blend it into the dry ingredients until the mixture resembles coarse crumbs.
Pour in the yeast mixture and egg. Stir with a wooden spoon or dough hook attachment until a soft dough forms. If it’s too sticky, add a tablespoon of flour at a time until manageable.
Turn the dough onto a lightly floured surface and knead for 5–10 minutes, or until smooth and elastic. The dough should be soft but not sticky.
Step 3: First Rise
Place the dough in a lightly greased bowl, cover with plastic wrap or a damp towel, and let it rise in a warm place for 1 hour, or until it doubles in size.
Step 4: Shape the Doughnuts
Once the dough has risen, punch it down gently to release the air. Roll it out to about ½-inch thickness on a floured surface.
Cut out doughnuts using a round cutter (or a glass) and a smaller cutter for the center. You can also shape them into small balls for classic glazed “Krispy Kreme-style” rounds.
Place the shaped dough on parchment paper, cover loosely with a towel, and let them rise again while you heat the oil.
Step 5: Fry the Doughnuts
Heat oil in a deep pot or skillet to 375°F (190°C). Carefully add 2–3 doughnuts at a time, being careful not to overcrowd the pot.
Fry for about 2 minutes per side, or until golden brown and puffed. Use tongs or a slotted spoon to flip them halfway through cooking.
Remove the doughnuts and drain on a wire rack or paper towels to remove excess oil.