1Sprinkle the yeast over the warm water, then add sugar and let stand for 5 minutes, or until foamy.
2Add in order, oil, 4 cups flour, salt, eggs (if using egg powder, otherwise add fresh with the oil), dry milk powder in mixer. Mix for a few minutes at low speed, knead in remaining flour 1/2 cup at a time, until the dough no longer sticks to the bowl.
3Knead for 12 minutes at a moderate speed. (Kneading for a longer amount of time develops the gluten faster and gets us out of that time sucking first rise)
4Allow dough to rest for 10 minutes.
5Turn the dough out onto a floured surface, and gently roll out to 1/2 inch thickness. Cut with a floured doughnut cutter. (I used a glass and the lid to my oil for the smaller hole. You can also just stick your finger through the middle to create the hole).
6Let doughnuts sit out to rise again until double (I let them sit for 15-20 minutes while I got everything else ready). Cover loosely with a cloth.
7Melt butter in a saucepan over medium heat or in a microwave. Stir in confectioners' sugar and vanilla until smooth. Remove from heat, and stir in hot water one tablespoon at a time until the icing is somewhat thin, but not watery. Set aside.
8Heat oil in a deep-fryer or large heavy skillet to 350 degrees F (175 degrees C). Slide doughnuts into the hot oil using a wide spatula. Turn doughnuts over as they rise to the surface. Fry doughnuts on each side until golden brown. Remove from hot oil, to drain on a wire rack. Dip doughnuts into the glaze while still hot, and set onto wire racks to drain off excess. Keep a cookie sheet or tray under racks for easier clean up.