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School Doughnuts

2 cups warm water
1 1/3 ounces yeast
1/2 cup sugar
2/3 tablespoon salt
1/2 cup butter
1 egg
1/2 cup dry milk
6 cups plain flour

4 cups powdered sugar
1/3 cup water
1 tablespoon vanilla extract

Cream butter and sugar, sifted flour and salt. Put yeast and soft butter in mixing bowl. Add water and eggs.

Mix dry milk and flour. Add to first mixture. Mix well. Turn dough out into lightly greased bowl and let rise in warm place until double in bulk.

Punch down and roll out 1/2-inch thick; cut with doughnut cutter. Let rise until double in size.

Fry in deep fat. Drain on paper. Dip into glaze.