Cook dried peaches on medium low heat in 2 cups of water, sugar, lemon juice, butter and cinnamon until peaches are soft and consistency is thick. Approx. 35-45 minutes.
Place flour and salt in a medium sized bowl. Cut in shortening until crumbly. Add milk and mix until soft dough forms. Divide dough into 10 portions. Roll each portion into a 6 inch circle. Place 1 heaping teaspoon of filling on half of dough. Fold over and seal edges.
In a large electric skillet bring 1/2 inch of oil to 350 degrees. Place 5 pies in oil and fry for 3-5 minutes on each side. Place on paper towel then sprinkle with sugar.