Makes 3 dozen
Let scalded milk cool to lukewarm. Add the yeast to ¼ cup of the milk, stir until dissolved, and then add the rest of the milk.
Add half of the flour, mixing well. Add the rest of the ingredients in the order given, the the remainder of the flour.
Knead on a lightly floured board. Let rise in a warm place until doubled in bulk; punch down.
Roll to ¼-inch thickness. Cut in rounds with a doughnut cutter. You may want to try varying the traditional doughnut shape in one of the following ways: 1) Make a rectangle of the dough and cut into pieces about 2 inches × 4 inches. Make a slit 2 inches long through the center of each piece. Turn one end through the slit is if starting to tie a knot. 2) Roll dough to rectangular shape. Cut into long strips. Cut each strip into 4-inch lengths. Twist two strips together.
Let rise on the floured board untli doubled in size. Drop carefully in deep fat heated to 375 degrees, and fry 1½ minutes on each side, or until golden brown.
Drain on paper towels. While still warm, shake in a bag containing a mixture of sugar and cinnamon.