Prepare the Dough:
In a mixing bowl, combine the flour, sugar, salt, baking powder, and yeast.
Add the warm milk, melted butter, and egg. Mix until a soft dough forms.
Knead the dough for 5–7 minutes until it becomes smooth and elastic.
Cover the dough with a damp cloth and let it rise for about 1 hour, or until doubled in size.
Shape the Donuts:
Once the dough has risen, punch it down to remove air bubbles.
Roll it out on a lightly floured surface to about 1/2-inch thickness.
Use a round cutter (or a glass) to cut out donut shapes. Re-roll scraps as needed.
Cook the Donuts:
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