Pour warm milk into the bowl of a stand mixer fitted with a dough hook. Sprinkle the yeast over the top. Allow to set for 5 minutes.

Once the yeast has proofed, sprinkle the sugar over the top.

In bowl combine salt, cinnamon and flour.

In another bowl whisk together cooled, melted butter and egg.

Turn the mixer to medium speed and pour in the egg and butter mixture. Next add the flour 1 tablespoon at a time until it is all incorporated. Be sure to scrape down the sides of the bowl as you go.

Allow the mixer to run, on medium speed for 8 - 10 minutes or until the dough starts to pull away from the sides and you hear it slapping against the bowl.

Turn off mixer and allow the dough to rest, untouched for 5 minutes.

Lightly oil a bowl, place dough in the bowl and toss dough to coat in the oil. Cover lightly and let rise in a warm dark place until doubled in size, about 45 - 60 minutes.

Once dough has doubled in size, place it on a lightly floured surface and roll out to 1/2 inch. Use a 3 inch doughnut cutter to cut dough into 10 doughnuts and 10 doughnut holes.

Place doughnuts and doughnut holes on a lightly floured baking sheet. Cover lightly and let rise for 1 1/2 to 2 hours or until they have doubled in size. You want them light and fluffy.

Make the coating by combining the granulated sugar and cinnamon together in a paper bag.

Heat canola oil to 365 degrees in a large pan. Once hot, place 2 - 3 doughnuts in the oil and fry, turning often, until they are golden brown 2 - 3 minutes. Use a slotted spoon to pick up the doughnuts. Allow excess grease to drip and quickly add the hot doughnuts to the cinnamon and sugar in the bag and shake to coat. Repeat with remaining doughnuts and doughnut holes. Serve hot.