Make sure all ingredients are at room temperature. Place the first 11 ingredients in the machine. Program for knead and first rise and press start. The dough will be just a little sticky; a tiny amount will stick to your finger. It does hold some shape while kneading. Flour your work surface and rolling pin. When the cycle is complete, turn the dough out onto the floured surface and let it sit for 10 minutes. Roll the dough to 1/3" thick. Use enough flour to keep the dough from sticking. Cut doughnuts with cutter. Place the doughnuts on a greased baking sheet and cover with a clean towel. Let rise for 1 hour, or until doubled in bulk. Heat 1 1/2 to 2" of oil in saucepan or deep fryer. Use a thermometer to help keep the temperature constant. Fry 2 to 3 doughnuts at a time. Fry them for 2 to 3 minutes, turning frequently and spooning the hot oil over them. Remove with slotted spoon and drain on paper towels. Check the first few for doneness. Shake the warm doughnuts, 3 or 4 at a time, in a sturdy paper bag with sugar in it.