Add yeast in 1/4 cup warm water. Scald milk and let cool to luke warm. Add yeast and flour for sponge like dough. Let rise 1 hour till light. Add salt, egg, sugar and shortening. Beat well. Add flour to make soft (but not sticky) dough. Let rise 1 hour and work down, roll out and cut with doughnut cutter or whatever you have on hand. Fry in oil at 360 degrees F. until a light golden brown. Add frosting or a powdered sugar frosting.