In your bread machine, first place the wet ingredients, the water, milk, shortening, followed by the dry stuff, sugar, flour, yeast. Set your machine to the dough setting and let it go. This will take about an hour, your dough and bread machine will do all the work. It will rise and everything.
When your bread machine has done all the work, turn your dough out onto a well floured work surface and roll it out to about ½” thick. Use a floured cookie cutter to cut out the shape you want. We did hearts and circles using a cookie cutter. We didn’t have an actual doughnut cutter. But you can use a water bottle lid to cut the doughnut hole! You can also make nifty shapes with the cookie cutters you have, teddy bears, ghosts, pumpkins, stars, the sky is the limit. Place the cut doughnuts onto a plate in a single layer until you are ready to fry them.
If you’re not ready to use the dough right away, you can leave them out for an hour or two covered with a tea towel. They will continue to rise, but that’s alright. If you’re not making your doughnuts until the following day, store them in the fridge over night in a single layer, covered with a tea towel.
When you’re ready to cook the doughnuts up, heat the oil in a deep frying pan until a thermometer reaches 350°F. (You can use an electric wok if it would be easier) We use the side burner on the grill to keep the smell and the mess down. Slide the doughnuts gently into the oil, one to two at a time. Fry them on each side until they’re golden brown. Remove them from the oil to drain on a wire rack.
Over medium heat, melt the butter in a saucepan. Mix in the confectioner’s sugar and the vanilla until it is smooth. Pull it off the heat and add the hot water until the icing is thin. You do not want it watery. Set this aside to cool a little.
Dip your still warm doughnuts in the glaze and then flip them over to coat both sides. Set the glazed doughnuts on a wire rack with a plate or some paper towel under so that they can drain and dry.
In a flat bowl, like a pie plate or pasta bowl, mix the cinnamon and sugar until they are evenly combined. Roll the doughnuts in the sugar combo until they’re well coated.
Roll the still warm doughnuts in the confectioner’s sugar. When they’re cools, sprinkle your doughnuts again with the powdered sugar to give them that beautiful white coating.