1. Combine water, milk, egg, and butter. Set aside.
    2. In a mixing bowl, combine flour, sugar, salt, and yeast. Make a well in the center and pour in wet mixture. Mix together until a dough forms. Knead dough until smooth and not sticky. Rest for 15 minutes.
    3. Prepare a pan lined with parchment paper. Flatten dough to about 1/4 inch thickness and cut using a doughnut cutter. Proof for 45 minutes or until double in volume.
    4. Fry in hot oil over medium heat for 30 seconds on one side and a minute on the other. Place on a pan lined with paper towel or wire rack. Serve with sugar or with glaze.

    Makes 10 servings