The thought of Malasadas takes me back to the days of carnivals and the red and white Malasada truck from Leonard's Bakery. It also took me back to staying at auntie Dianne and uncle Ben's with my cousins during the summer. We would make "pseudo malasadas" using Pilsbury biscuit dough. Over the years, I have tried so many different malasadas but nothing compares to Leonard's Bakery.
Dissolve yeast and 1 teaspoon sugar in 1/4 cup warm water; set aside.
In small bowl, beat eggs until thick.
Put flour in large bowl, making a well in the center. Into the well add yeast mixture, eggs, 1/2 cup sugar, melted butter, milk, 1 cup water, and salt.
Beat thoroughly to form a soft, smooth dough.
Cover, let dough rise until doubled. Letting dough rise slowly in a refrigerator gives the dough time to mature and gives the dough more flavor.
Heat oil to 375 degrees F (190 degrees C).
Drop dough by big teaspoonfuls into oil, fry until golden brown. Drain on paper towels, shake in a bag of sugar to coat, and serve hot.