in medium bowl disolve the yeast in warm water

add the milk, butter, egg, sugar, and salt

blend with electric mixer until smooth

add half of the flour and mix for 30 seconds

add the remaining flour and kneed the dough with dusted hands until smooth

cover the bowl of dough and leave in warm place until the dough doubles in size. it takes about an hour to double in size.

after it has doubled in size then roll the dough on a floured surface until it is about 1/2 inch thick

cut out with a donut cutter. if you do not have a donut cutter you can use a round glass to cut it out and a small bottle cap to cut out the hole.

put the donuts on a cookie sheet lined with wax paper

cover and let it sit in warm place until It doubles in size, this is about an hour

heat the vegetable oil in a fry pan over medium heat

bring the oil to a temperature of 350°F

fry each donut for about 30 seconds on each side or until golden brown

cool donuts on a paper towel for about 5 minutes

for the glaze combine the butter with the powder sugar and mix with a mixer ,

add vanilla and hot water and mix until smooth.

melt the chocolate chips and add it to the glaze mixture until smooth

dip one side of the donut in the glaze and then dip it in the chocolate sprinkles

let set for 15 minutes so the glaze will firm up on the donut