Add 4 tablespoons sugar in 1/2 cup lukewarm milk. Mix well. Sprinkle 3/4 tablespoon active dry yeast over it and set aside for 15 minutes.

The yeast will turn frothy. If the yeast doesn't turn bubbly it is better to start with a fresh batch of yeast. Now to the frothy milk add the following ingredients. 2 cups all purpose flour, 1/8 teaspoon baking soda, 3 tablespoons soft butter, 3 tablespoons curd, 1/2 teaspoon vanilla extract.

Mix well with a wooden spoon.

Once everything comes together start kneading. Knead very well for 5-7 minutes. The dough should very smooth and supple. The dough will be a bit sticky, do not add more flour. Rub some butter in palms and knead to a soft dough. Set aside for 1.5 hours until the dough doubles in volume.

Once the dough is doubled divide it 2 equal parts.

Take one dough ball and roll it into a thick circle.

Use a round cookie cutter or a sharp lid and cut circles. Using another small lid make a hole in the center of each round. Repeat the same with all the dough.

Arrange the shaped donuts gently on a tray. Cover with a cloth and let it rise for 30 minutes.

Now you can either fry or bake the donuts.

For deep frying heat oil in a kadai. Gently slide 2-3 donuts at a time and deep fry until golden brown. Remove to a tissue and set aside.

For baking preheat oven at 170C. Bake the arranged donuts for 15-18 minutes until it turns golden brown and puffy.

Now the donuts are ready lets make the glaze. Take powdered sugar in a small bowl. Add 1/2 teaspoon vanilla extract, melted butter and milk. Mix very well. Dip each donut into the glaze and dust in sprinkles or nuts of your choice.

For making nutella glaze, take nutella in a small bowl. Add melted butter and mix well. Dip the donuts in nutella glaze and dust in sprinkles.

Arrange in a tray and serve glazed dounts warm.