From a site about history of doughnuts, it is pointed out that doughnuts
 began with small batches of dough left over from making bread. The
 Pilgrims learned this is Holland, and brought the idea with them to
Massachusetts. In 1847, a boy asked his mother to make rings, because
 he didn't like soggy centers. So, the ring doughnut was born. At first
 doughnuts were yeast raised, and cooked in hot fat. When fat became
 a dirty word, the cake doughnut was developed, the raising achieved with 
baking powder. Or both baking powder and yeast, as in Martha Stewart recipe.
If you take one look at the recipe, you are almost certain to forget making your
 own. It's a lot of work. The one thing I couldn't find out is how commercial donuts
 have so little oil on them. 
http://makeashorterlink.com/?M35F14351   Wait a few seconds for it to work.