Sift two cups of flour, two and a half teaspoons of baking powder and half a teaspoon of salt in a medium sized mixing bowl.
Add 1/3 cup of butter flavoured shortening to the dry ingredients and stir with a mixing spoon to crumble and incorporate the shortening into the flour mixture. Keep stirring until there are no large clumps remaining. You can also use plain, unsalted butter if you do not have butter flavoured shortening.
Once the butter has been evenly mixed, add ¾ cup of milk and stir again until a thick dough is formed.
Now move the dough to a lightly floured surface, such as a kitchen counter, and thoroughly knead it with your hands. However, do not overwork the dough, kneading 8 to 12 times is enough.
Now divide the dough into small pieces and roll them into small round balls. Gently press each ball with your hands to flatten it and give it a shape of a baked cookie.
Set your frying pan over the stove and pour enough oil into it to cover about 2 to 3 inches of the bottom. Heat the oil with the stove set on medium to medium-high heat.
Set a few doughnuts in the fryer in a single layer and fry them for about two minutes, or until they are very lightly browned. Turn the doughnuts over and fry the other side as well for another two minutes.
Remove the doughnuts from the fryer with a slotted spoon and place them in a plate lined with paper towel. Continue frying the doughnuts until they have all been cooked.
Spread a thick layer of confectioners’ sugar onto a plate and roll the cooked doughnuts in it until they are properly coated on both sides.
Your delicious, homemade Chinese doughnuts are ready.