Source: San Jose Mercury News 11-27-02 - Recipe from Saffron Shores, Jewish Cooking of the Southern Mediterranean by Joyce Goldstein

2 envelopes active dry yeast
1/4 cup granulated sugar
1/2 cup warm water
4 cups all-purpose flour
1/2 teaspoon salt
2 lightly beaten eggs
Grated zest of 1 orange (optional)
1/4 cup canola oil (optional) or melted margarine or unsalted butter
1 1/2 to 2 cups warm water or part water part orange juice
Peanut or canola oil for deep-frying
Granulated sugar for sprinkling or warm honey for dipping

Dissolve yeast and sugar in 1/2 cup warm water. Let sit until foamy, about 10 minutes. Pour into a large bowl and gradually stir in flour and salt. Stir in eggs, zest and the 1/4 cup oil, margarine or butter, if using. Stir in just enough water or water and juice to make a soft and elastic dough. Knead well with a dough hook or by hand on a lightly floured surface until dough is elastic, smooth and shiny. Roll into a ball, place in an oiled bowl and turn to coat. Cover with a damp towel or plastic wrap and let rise in a warm place until doubled, 1 1/2 to 2 hours.

Oil your hands. Divide dough into 20 balls about 2 inches in diameter.

In a deep saucepan or wok, heat 3 inches oil to 365 degrees F. Take a ball of dough, make a hole in center and pull it out to make a doughnut shape. Deep-fry a few at a time until doughnuts are puffed and golden. Using a slotted spoon or skimmer, transfer to paper towels to drain. While still hot, sprinkle with granulated sugar or dip in warm honey. Serve warm.

Makes about 20 doughnuts.

Per serving: (per doughnut, not including optional ingredients) 184 calories, 3g protein, 8g fat (1g saturated), 24g carbohydrate, 59mg sodium, 0mg cholesterol, trace dietary fiber