Add all the yeast, powdered milk and sugar to the flour. Then add the egg to the warm water. Pour the warm water and egg into the flour and mix it to form a dough. Transfer to a floured surface and knead for about a minute then add the butter. Continue kneading it for 10 to 15 minutes.

Roll it out and use a cutter to cut out donut shapes. Heat up some oil. When the oil is hot enough, fry the donuts on low heat.