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Beat sugar into eggs; stir in milk. Sift dry ingredients; add dry ingredients, butter and vanilla to milk mixture. Toss 1/2 of dough on floured board; knead lightly. Pat to 1/4 inch thickness; cut dough with floured knife into 1 1/2 x 3 inch rectangles. Slash each rectangle vertically in center for 1-inch; gently pass bottom end of rectangle through slash. Gently place doughnut on floured board; allow to rise for 5 minutes. Fry in hot oil for 2 to 3 minutes, turning often. Fry only 4 to 5 doughnuts at a time to allow room for maximum rising. Drain on absorbent towel or paper and roll in sugar or cinnamon sugar mixture. Can frost with powdered sugar frosting. Yield- 3 dozen.
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