Add water and 1 teaspoon sugar to yeast in a small bowl and mix until pasty. Set aside and let rise until spongy.
Scald milk with margarine and cool to lukewarm.
Beat egg yolks. Add sugar and mix thoroughly. Add the cooled scalded milk mixture and beat until foamy. Mix in yeast mixture. Add flour gradually beating after each addition to make a soft dough. Beat until thick and springy, but note that too much flour will make hard doughnuts. Cover and let rise until doubled.
Shape dough into small balls. Let them rise on floured greaseproof paper until doubled.
In a deep fat fryer, heat oil to 190 degrees C. Fry doughnuts until brown. Then roll in sugar and cool.
I did not cook these as stated in the recipe. I used this dough to make sausage rolls.(Kolachies) It worked wonderfully!!!!! After the dough rose the last time, I rolled it around either some sausage or ham and cheese. allowed the dough to rise once more, and then baked till golden. Everyone loved them. - 14 Jul 2008
These took a long, long, long time to put together and I don't think that they were worth it. They were either burnt or gooey in the middle and the ones that did cook right were very tough. - 14 Jul 2008