Activate Yeast: In a small bowl, combine warm milk and yeast. Let sit for 5 minutes until frothy.
Mix Dough: In a large bowl, whisk together 1 1/2 cups of flour, sugar, and salt. Add melted butter, egg, vanilla, and yeast mixture. Mix until smooth.
Knead: Gradually add the remaining flour as needed to form a soft dough. Knead for 5–7 minutes until elastic and smooth.
First Rise: Cover the dough with a clean towel and let it rise in a warm place for 1–2 hours, or until doubled in size.
Shape Donuts: Roll out the dough on a floured surface to about 1/2-inch thickness. Use a donut cutter or two round cutters to cut shapes. Place on a parchment-lined baking sheet.
Second Rise: Cover lightly and let rise for 30 minutes.
Bake: Preheat oven to 375°F (190°C). Bake donuts for 10–12 minutes until lightly golden. Remove and cool slightly.
Glaze and Decorate: Mix powdered sugar with milk or lemon juice to make a glaze. Dip warm donuts and add sprinkles if desired.
Serving and Storage Tips
