In a large saucepan, heat 3 inches of oil over medium heat. In a large bowl, combine first 6 ingredients. Stir in milk, oil, vanilla and egg with a fork just until dry ingredients are moistened. Drop by the tsp into hot oil, 5 or 6 at a time. Fry donut drops for about a minute on each side until deep golden brown. Drain on paper towel. Mix the sugar and cinnamon and roll warm doughnuts in mixture.