Combine flour, sugar, baking powder and salt and mix.

Rub butter into the dry ingredients

Add milk and mix until combined. Move dough to a floured surface and knead gently until smooth and manageable

Heat oil in a sauce pan. Roll dough into small, smooth, tight balls.

Fry donut holes for approx 3.5 minutes. Cut one open to check if it is cooked properly. Roll in cinnamon sugar while still warm. Drizzle with caramel chocolate and serve warm with ice cream