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Combine yeast and warm water in a 1 cup liquid measuring cup; let stand 5 minutes. Combine yeast mixture, milk, next 6 ingredients and 1 cup flour in a large mixing bowl; beat at medium speed with an electric mixer about 2 minutes or until blended. Stir in remaining 1 1/2 cups flour. Cover and let rise in a warm place (85 degrees), free from drafts, 1 hour or until doubled in bulk. Punch dough down; turn dough out onto a well floured surface, and knead several times. Roll dough to 1/2 inch thickness, and cut with a 2 1/2 inch doughnut cutter. Place doughnuts on a lightly floured surface. Cover and let rise in a warm place, free from drafts until doubled in bulk. Pour oil to depth of 2 to 3 inches in a dutch oven; heat to 375 degrees. Cook doughnuts 4 or 5 at a time in hot oil about 1 minutes or until golden on 1 side. Turn and cook other side about 1 minute. Drain well on paper towels. Dip each doughnut while warm in glaze, letting excess drip off. Cool on wire racks.
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