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BA's Best Apple Cider Doughnuts

['2 (3-inch) cinnamon sticks', '3 cups apple cider', '1/2 cup apple butter', '1/2 cup buttermilk', '2 teaspoons vanilla extract', '1 tablespoon plus 2 teaspoons baking powder', '1 teaspoon kosher salt', '1/4 teaspoon baking soda', '1/4 teaspoon freshly grated nutmeg', '3 1/2 cups all-purpose flour, plus more for dusting', '1 tablespoon plus 1 teaspoon ground cinnamon, divided', '6 tablespoons unsalted butter, room temperature', '1/4 cup (packed) light brown sugar', '1 1/4 cups granulated sugar', '2 large eggs', 'Vegetable oil (for frying; about 4 cups)', 'A 3 1/4-inch-diameter cutter', '1 1/4-inch-diameter cutter', 'deep-fry thermometer']

Bring cinnamon sticks and apple cider to a boil in a large skillet over medium-high heat and cook until liquid is thick, syrupy, and reduced to about 1/3 cup, 20–30 minutes. Scrape into a medium bowl and whisk in apple butter, buttermilk, and vanilla until incorporated; set aside.
Whisk baking powder, salt, baking soda, nutmeg, 3 1/2 cups flour, and 1 tsp. ground cinnamon in a medium bowl. Using an electric mixer on medium-high speed, beat butter, brown sugar, and 1/4 cup granulated sugar in a large bowl until light and fluffy, about 4 minutes. Add eggs one at a time, beating until well blended after each addition. Reduce mixer speed to low and add dry ingredients in 2 additions, alternating with cider mixture in 2 additions, starting with dry ingredients and ending with cider mixture (dough will be very soft and sticky).
Scrape dough onto a parchment lined-rimmed baking sheet thoroughly dusted with flour (about 1/3 cup). Dust hands and top of dough with more flour, then gently pat dough to 3/4" thick. Dust with more flour and tightly cover with plastic wrap; chill dough at least 3 hours.
Whisk remaining 1 cup granulated sugar and 1 Tbsp. cinnamon in a small bowl until no lumps remain.
Working on baking sheet, punch out as many rounds as you can with 3 1/4" cutter, then use 1 1/4" cutter to punch out center of each round. Gather doughnut scraps, reserving holes, and gently re-roll without overworking dough; repeat until all dough has been used (you should have 18 doughnuts).
Set a wire rack inside a paper towel-lined rimmed baking sheet. Fit a large pot with deep-fry thermometer and pour in oil to a depth of 3". Heat over medium-high until thermometer registers 350°F. Working in batches, fry doughnuts until deep golden brown, about 3 minutes per side. Transfer to prepared rack and let cool slightly. Fry doughnut holes until deep golden brown, about 2 minutes per side. Transfer to prepared rack and let cool slightly. Toss warm doughnuts and doughnut holes in cinnamon sugar.
Dough can be made 1 day ahead; cover and chill.

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