Combine warm milk and sugar in a bowl and sprinkle the yeast over the mixture. Let it sit for about 5-10 minutes until it becomes frothy.
In another mixing bowl, combine the flour and salt. Add the yeast mixture, melted butter, and egg. Mix until a soft dough forms.
Knead the dough for about 7 to 8 minutes on a flat surface. In a greased bowl, let the dough sit for another 1 hour.
Once the dough has risen, punch it down to release the air. Roll it out to about ½-inch thickness. Use a donut cutter to form the shapes.
Place them on a parchment-lined baking sheet and let them rise for another 30 minutes.
Now, fry the donuts in a deep fryer for about 1-2 minutes.
While the donuts are still warm, coat them in powdered sugar, cinnamon sugar, or dip them in your favourite glaze.