1. In a bread maker, add the ingredients in the following order (or as suggested in the bread maker manual), milk, water, egg, all purpose flour, sugar and salt.
2. Using a spatula move the flour to the corners of the bread maker to make a well in the center and add the vegetable shortening on the four corners of the machine and add the fast rise yeast in the center.
3. Put the machine on the dough setting, and knead the bread for 1 hour and 20 minutes or as per the bread maker instruction manual.
4. Once done, remove the dough onto a board and let it rest for 15 minutes before shaping it.
5. After 15 minutes, shape the dough into a rectangular shape of about 1/2 inch thickness. Using a donut cutter, cut the shapes out from the dough and set them aside on the counter. Cover the donuts with a cloth and let them rise for 35 minutes.
6. In a deep fryer or deep frying pan, heat the oil for frying donuts. Once hot, gently add in the risen donuts and let them fry for 3 - 4 minutes on medium heat or until golden brown and crisp. Once done transfer them onto a cookie sheet lined with paper towels to drain excess oil.
7. Once the oil is drained well, take the crispy donuts and coat some of them in the bowl with powdered sugar and the rest in a bowl of cinnamon sugar.
8. Serve these sugar coated donuts with warm milk or coffee.