Bring your milk just to a boil in a sauce pan. Remove from the stove and cool.
Stir the yeast in the warm water until dissolved.Your water temperature should be warm to your wrist.
Hand-stir in sugar until completely dissolved. Add the warm milk. Beat in salt, oil, egg, and 3 1/2 cups of the flour until smooth. Stir in additional flour slowly just until dough is easy to handle and not sticking to your hands.
Lightly flour a table or other surface. Empty the dough onto the floured surface and knead until smooth and elastic. This should take about five minutes.
Grease a bowl and place dough in it. Place the bowl in a warm spot and let rise for 1 1/2 hours or until double. Punch dough down and you are ready to shape into doughnuts.
Watch a video to see how to roll doughnuts:
Shape your Yeast Doughnuts into Twists
Transfer dough on to a greased surface like a counter top or table. Use a knife to cut dough into pieces about the size of 1/2 C. Roll the dough between your palms into a long cylinder shape about 1/3 inch in diameter.
Grab the piece of dough in the middle with the index finger and thumb of one hand. Use two fingers of other hand to grab one end of the dough. Spin it around into a braid.
Place the doughnut on a greased surface. I use a cookie sheet. Repeat with rest of dough, allowing about an inch of space between doughnuts to allow for rising.
Let rise in a warm place until double (30 to 40 minutes).
Fry your Yeast Doughnuts
Put some cooking oil in a frying pan up to 1 inch. Heat the oil on medium.
Test-fry one doughnut by placing in the hot oil. Reduce heat to medium low and alternate between medium and medium-low while cooking. See tips below.
Fry doughnuts until golden brown, flip, and then remove from oil as each side is ready. Be careful not to over fry. They should be light and golden brown.
Place doughnuts on paper towels to remove the excess oil.
Watch a short video here about frying doughnuts.
Sugar and Cinnamon
Place about 1 to 1 1/2 C of sugar in a bowl. Sprinkle in about 2 tsp ground cinnamon if desired and mix well. Put as much cinnamon as you like. I just use a little to give it some flavor.
Roll doughnuts in the sugar and your yeast doughnuts are ready to enjoy.