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In a mixer with dough hook attachment add yeast, water, sugar, egg, melted butter, milk, vanilla and salt. With mixer on low add flour a little at a time. May need to add more flour if dough is too sticky, it will be a little sticky. Knead just enough to form a ball and place in an lightly oiled bowl cover with plastic wrap, let rise 1 hour or overnight. Place dough on a floured board roll out to 1/4 inch thick. Use a 2 inch round cookie cutter and make rounds, or for doughnuts remove the center, place on a floured baking sheet, let rise 10 minutes, in a warm spot discard any left over dough. In a small bowl mix sugar and cinnamon and set aside. In a small heavy pot heat oil to 350 degrees add one or two donuts at a time turning till golden brown. Drain on paper towels, and toss in sugar and cinnamon mixture, serve warm. Makes about 2 dozen.
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