In a large measuring bowl, combine the milk and boiling water. Add a teaspoon of the sugar and the yeast. Stir it gently, then leave it in a warm place for the yeast to activate. It will look foamy
In a large mixing bowl, combine the flour, the rest of the sugar, and the salt. Cut in the butter using your fingers or a pastry blender, until it resembles crumbs.
Add the egg and yeast mixture to the flour mix, and mix into a smooth dough. This usually takes about 5 minutes of mixing.
Turn the dough out onto a lightly-floured counter and knead for about 5 to 10 minutes—it should feel springy and little bubbles should form under the surface. Place it back in the bowl, cover with a cloth or plastic wrap, and let rise for about an hour until double in size.
Once risen, place the dough onto the counter and cut it into 4 pieces. One piece at a time, stretch it into a long rope about an inch to an inch and a half wide. Cut strips about an inch long, ball em up with your hands, and place them on a baking tray or wire rack to wait.Cover the donut holes with a cloth to rise. Cover the donut holes with a cloth to rise
Heat the oil to 375F. Place the donuts into the oil and fry until golden brown on each side, about 2 minutes. Only cook a few at a time so they don’t overcrowd and stick together.
Drain on a paper towel or wire rack over a cloth, before glazing them.
Combine ingredients for glaze. Dunk cooked donuts in warm glaze and place on paper towel or wire rack to dry. Reheat glaze if it cools too much. It needs to be warm while dunking donuts to get that yummy Krisp Kreme affect.