1. Scald milk.
2. Stir in sugar, salt and butter.
3. Cool until luke warm.
4. Measure luke warm water into a separate warm mixing bowl, then sprinkle yeast and stir until yeast dissolves.
5. Now add the luke warm milk mixture to the yeast mixture.
6. Add beaten egg and half the flour.
7. Beat until smooth.
8. Stir in enough remaining flour to make soft dough.
9. Turn dough onto floured counter and punch (knead) until smooth and elastic (about 5-10 minutes)
10. Place dough in a greased bowl and then turn dough over with grease side up. Cover with a warm damp cloth and let rise in a warm spot for 1 hour.
11. Punch dough and roll out on a counter until 10 x 12 rectangle. Then use a sharp knife to cut square donuts. How many depends on the size you want.
12. Place square donuts on wax paper on a cookie sheet and cover with more wax paper. Place a warm damp cloth on top and let rise for 1 hour or until they double in size.
13. 15 minutes before donuts are ready, heat vegetable oil in a wok (375º). Fry donuts in the oil, once it has turned brown, turn over and cook the other side until brown.
14. Remove and drain on paper towel.
15. Glaze while still warm.
FOR GLAZE: Combine 2 cups of icing sugar, ⅓ cup of milk and 1 tsp on vanilla. Then it is ready to drizzle.