Combine flour, baking powder, and salt in a large bowl. In another bowl combine water, oil, and dry milk powder, stir into the flour mixture until the dough is smooth. Turn out onto a lightly floured surface. Knead 4 times into a smooth ball. Cover and let rest 10 minutes. Divide into 8 balls. Flatten with finger tips or roll out each ball to an 8-10 inch round. Make a small hole in the center of each round with your finger or the handle of a wooden spoon. Lightly flour rounds, stack and cover with a towel or plastic wrap.
Heat about 1 inch oil to 375 degrees in a large skillet. Gently place 1 bread round in the hot fat and cook until golden and crisp, 1-2 minutes on each side.
Drain on paper towels. Repeat with remaining dough. Sprinkle with cinnamon sugar. Serve hot.