When making dough in a bread maker, the order the ingredients are added in is important. Add ingredients layer by layer, and do not mix. For the first layer in the bread maker, add milk, water, and beaten egg. Next add the butter, sugar and salt. Finally add the flour, and the yeast as the last ingredient. Set bread maker to dough setting and start the machine.
When the dough is finished, roll dough out using a rolling pin on a lightly floured surface to about a ½ inch thick. Use small circle cookie cutters to cut out the donuts. Reroll your scapes and cut out the donuts once more. Lay the donuts on a greased cookie sheet, cover with plastic wrap and allow to rise around 30 min. in a warm place.
Fry donuts in oil. The oil temperature should be 350 degrees, using a deep fryer or a pot of oil on the stove with a candy thermometer in it to check the temperature. Fry the donuts on one side until they are golden brown, then flip over and cook over side. (If the outside is too brown and the middle isn’t cooked, the temperature of your oil is too hot -you will have to watch the temp as you go, and adjust as needed, or use a deep fryer.) Fry the donuts in batches so you do not overcrowd the pan and cool off the hot oil too much. Use a slotted spoon to remove them and let the excess oil drain off.
Roll the hot donuts in powdered sugar to coat them, when they're cool. To fill the donuts with Nutella, wait until they are cool, then use a piping bag with a #230 tip to pipe the Nutella into the middle. These donuts are best eaten the same day they're made.