Line a large baking sheet or platter with paper towels over a cooling rack.

If using a deep fryer, pour oil into basket according to manufacturer directions.

If using a pan, pour oil into heavy bottomed pan (I prefer to use an enameled dutch oven or steel pan since cast iron can break down oil faster.)

Heat oil until it reaches 350 F degrees. 

Adjust heat level as needed while cooking to be sure you keep the 350 degree temperature.

While oil is heating, stir ingredients (except for powdered sugar) together in a bowl. Do not overwork.

Once oil has reached 350 F degrees, use a long handled metal ladle or scoop to shape batter and drop donut hole dough into the oil. 

Take caution when dropping donut hole dough into oil, never have hands or face near pot or over pot.

Add only 6-8 donut holes to oil at a time so they dont drop oil temperature and have enough room to cook.

When donut holes are lovely golden brown and puffy, remove from oil with long tongs or a frying basket.

Place donut holes on paper towel and let excess oil drain off and cool.

When donut holes are warm but not hot, roll in powdered sugar. The steam will help sugar stick to donuts, but if they are too hot it will "melt".

Serve immediately.