1-First Step: Prepare Ingredients and Heat Oil: Start by gathering all ingredients. Measure out the flour, sugar, baking powder, salt, butter, and milk. Heat vegetable or canola oil in a heavy-bottomed pot or Dutch oven to 350°F (175°C) using a reliable kitchen thermometer to maintain consistent temperature during frying.

2-Second Step: Mix Dry Ingredients: In a large bowl, whisk together the all-purpose flour, granulated sugar, baking powder, and salt until combined evenly. This creates the dry base of the dough.

3-Third Step: Incorporate Butter: Grate the very cold (preferably frozen) unsalted butter into the dry mixture. Stir gently until small visible pieces of butter are evenly distributed to create a tender, flaky dough texture.

4-Fourth Step: Add Milk and Form Dough: Pour in the milk and stir gently until the dough begins to come together. Turn it out onto a lightly floured surface and knead just enough to form a cohesive ball. Add flour sparingly if the dough is too sticky, but avoid overworking to keep donut holes tender.

5-Fifth Step: Portion and Shape Dough: Divide the dough into around 18 equal portions, each about 1.5 tablespoons. Roll each piece tightly and smoothly between your palms into a ball to prevent them from falling apart during frying.

6-Sixth Step: Prepare Cinnamon Sugar Coating: In a small bowl, mix the granulated sugar and ground cinnamon to create the coating mixture. Set aside until donut holes are fried and ready for coating.

7-Seventh Step: Fry Donut Holes: Carefully drop 2-3 donut balls at a time into the hot oil. Fry for about 90 seconds to 2 minutes, turning halfway through to ensure even golden crust. Maintain oil temperature at 350°F by allowing it to return before adding new batches.

8-Eighth Step: Drain and Coat: Remove donut holes using a slotted spoon, let drain briefly on paper towels, then immediately toss in the cinnamon sugar mixture while still warm for even coating.

9-Final Step: Serve and Enjoy: Enjoy your homemade donut holes fresh and warm or let cool for later. These donut holes are perfect for breakfast or a snack. Store leftovers properly but note that texture is best when eaten fresh.