In a heavy bottomed pan, pour 2-inches of canola oil and then heat to 350 degrees Fahrenheit.
Measure and then add 2 cups flour to the bowl of a food processor with the chopping blade inserted.
Then, add 2 teaspoons granulated sugar to the flour in the food processor bowl.
Measure and then add 1/2 teaspoon salt to the food processor.
Measure and then add 2 1/2 teaspoons baking powder to the food processor and then cover with the lid.
Process the dry ingredients until just combined and then turn off the food processor.
Cut the cold butter into cubes and then add it to the bowl of the food processor. Cover and then process until the butter mixes well and resembles coarse crumbles.
Measure and then add 3/4 cup milk through the funnel spout and process until the ingredients come together.
Turn out the dough onto a clean and floured surface, and then pat the dough using your fingers until the dough measures 1/2-inch thick.
Use a 2-inch biscuit cutter, or a cup, to cut the dough into circles, then place them on wax paper until ready to fry.
When the oil is heated to 350 degrees Fahrenheit, add the biscuits in small batches and fry for 2 minutes on each side.
Place a cooling rack in a rimmed baking sheet and then add paper towel sheets on top of the cooling rack, then set aside.
Using a strainer or fry spatula, flip the doughnuts and continue to fry them all, when done, remove to the paper towel to let rest for 1 minute.
In a medium bowl, add granulated sugar and then place 2-4 doughnuts and coat with the sugar.