1. Take a bowl add sugar,dry yeast,water,milk,salt,egg, mix it till the sugar melts, then add all purpose flour, mix it well make in to a dough and knead it for 10 to 15 minutes and add butter again knead it for 5-10 minutes and rest it for 30 minutes in a warm place, after 30 minutes again knead it for 2-3 minutes and again rest for 30 minutes.
  2. Take the dough and with help of rolling pin roll it into ½ inch sheet and cut the doughnuts with donuts cutter, transfer in to the tray, then rest for 10 to 15 minutes to rise.
  3. Heat oil in a pan and deep fry the donuts in a slow flame till brown in color, take in a serving plate and mix some caster sugar along with cinnamon powder and coat the Donuts in it.Serve hot and fresh.

Consume within a day till its fresh and hot.