Mention the concept of a baked doughnut to any self-professed doughnut connoisseur, chances are you'll take some heat. The idea that a baked doughnut can match up to its deep-fried brethren is laughable in some circles. I'll concede they aren't the same, but baked doughnuts can be just as delicious - delicious yet different. They get bonus points for being healthier and for not making the house smell like a greasy fry station.
1 1/3 cups warm milk, 95 to 105 degrees (divided)
1 packet active dry yeast (2 1/4 teaspoons)
2 tablespoons butter
2/3 cup sugar
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