Knead dough for making donuts. Make milk lukewarm; also melt butter a bit so that it gets mixed in flour easily.
Take flour in a big utensil, add sugar, salt and butter.
Activate yeast by adding them in lukewarm water. Keep this mixture aside for 5-10 minutes. Once yeast is activated you should see bubbles in water mixture. Add activated yeast to flour mixture.
Mix all ingredients very well. With help of lukewarm milk knead soft dough (we have used more then 1/2 cup milk). Keep kneading the dough for 5-7 minutes so that it gets soft.
Roll the dough giving it a round shape. Spread some dry flour on the board and place dough on it.
With help of rolling pin make a round circle with 1/2- 3/4 cm thickness and cut round donuts with help of a glass or steel bowl or anyt big circular thing.
Take a small cap of bottle and make holes in the center of donuts. Place donuts on a tray.
Brush all prepared donuts with oil so that they don’t get dried.
Cover donuts with a muslin cloth and keep them aside for 2 hours so that they become puffy. (For best results: Preheat oven, switch it off and place donuts inside it. Alternately if oven is not available you can preheat any big vessel on gas and keep donuts inside it by convering the vessel.)
Once donuts doubles in size after 2 hours fry donuts on low flame until they turn golden brown in color.
Take out fried donuts in a plate with absorbent paper. Fry all donuts like wise.
Dust donuts with powdered sugar.