Raised Doughnuts

1 T. yeast
3/4 c. warm milk
1/4 c. margarine
1/4 c. sugar
1 tsp. salt
1 egg, beaten
approx. 3 1/2 c. flour

Warm milk and margarine in a small saucepan on the stove - do not boil. In mixer bowl, combine sugar, yeast, and about half the flour. With mixer on low, add milk to flour. Then add the salt and egg and remaining flour until dough reaches the right consistency (dough should be slightly sticky). Remove dough hook/beater, cover bowl and let dough rise until double in size. Roll out dough on a lightly floured surface til 1/3-inch thick and cut out doughnuts. Allow doughnuts and holes to rise uncovered for 30-40 minutes. Fry in at least 1 1/2 inches of oil until browned. Dredge doughnuts in powdered sugar, cinnamon sugar, etc.