1-Step 1: Heat the Oil Begin by heating 2-3 inches of vegetable oil or canola oil in a heavy-bottomed saucepan. Use a thermometer to monitor the temperature closely, aiming for exactly 350°F. This step takes approximately 20 minutes, so start early. The heavy-bottomed pan helps distribute heat evenly and prevents hot spots that could burn your donuts. If you don’t have a thermometer, test by dropping a small piece of bread into the oil – it should sizzle immediately and turn golden in about 60 seconds at the correct temperature.

2-Step 2: Prepare the Dry Ingredients While the oil heats, whisk together the flour, 3 tablespoons granulated sugar, baking powder, and salt in a large mixing bowl. This ensures even distribution of the leavening agent and prevents any bitter pockets of baking powder in your finished donuts. Make sure your bowl is large enough to accommodate mixing without spilling.

3-Step 3: Incorporate the Cold Butter This is where the magic happens. Take your very cold unsalted butter straight from the refrigerator and grate it using a box grater directly into the dry ingredients. The butter should remain cold enough that it doesn’t melt on contact with your hands or the bowl. Stir gently with a fork or your fingertips until the butter pieces are distributed throughout with visible small pieces remaining. These butter pieces create steam pockets during frying, resulting in a tender, layered interior.

4-Step 4: Add the Milk and Form the Dough Pour the 3/4 cup whole milk into the flour-butter mixture. Using a wooden spoon or spatula, stir gently and briefly just until a shaggy dough forms. Avoid overmixing at this stage, as it develops gluten and makes the donuts tough instead of tender. The dough should come together but may look slightly rough.

5-Step 5: Knead Lightly and Shape Turn the dough onto a floured surface and knead it lightly, just 3-4 times, until it forms a cohesive ball. If the dough feels sticky, add flour gradually, one tablespoon at a time. The goal is a soft, manageable dough that doesn’t stick excessively to your hands. Divide the dough into 1.5-tablespoon portions and roll each piece between your palms into tight, smooth balls. Rolling them tightly prevents the donuts from breaking apart during frying.

6-Step 6: Prepare the Coating and Frying Station In a shallow bowl or plate, mix together 1/3 cup sugar and 1 1/2 teaspoons ground cinnamon for rolling. Line a separate plate with paper towels to drain the fried donuts. Having everything set up before frying begins ensures smooth workflow and prevents burning while you search for equipment.

7-Step 7: Fry the Donut Holes Once the oil reaches 350°F, carefully drop 2-3 dough balls into the hot oil. Do not overcrowd the pan, as this causes the temperature to drop and results in greasy donuts. Fry for approximately 90 seconds total, turning the balls halfway through cooking when they naturally rise to the surface and begin browning on one side. The donuts should turn a beautiful golden brown color on all sides. If your donuts flip wildly on their own, simply use a slotted spoon to gently guide them for even browning. This flipping is normal and happens due to air pockets expanding inside the dough.

8-Step 8: Drain and Coat Remove the fried donut holes with a slotted spoon and place them on the paper towel-lined plate for a brief cooling period, about 30 seconds to 1 minute. They should be cool enough to handle but still warm when you coat them. Roll each donut hole in the cinnamon sugar mixture while still warm, pressing gently to ensure the coating adheres well. The slight residual heat helps the sugar stick better.

9-Step 9: Maintain Temperature and Continue Frying Between batches, allow the oil to return to 350°F before adding more dough. This temperature recovery is crucial for consistent results. If the oil is too cool, the donuts will absorb excess grease. If too hot, the exterior browns before the inside cooks through. Fry a test piece first if you’re unsure about your temperature.