Heat the milk in a medium saucepan until warm enough to melt the butter. Pour over 1/4 cup sugar and 1/4 cup salted butter.
Let cool to room temperature. In a small bowl, sprinkle the yeast over the warm water and let dissolve for 5 minutes and it should get foamy.
Add this foamed yeast and 2 cups maida, 1/4 tsp salt and 1/2 tsp baking powder to the milk mixture. Continue adding flour, 1/4 cup at a time, until mixture is a stiff dough, and no longer sticky.
Slowly mix in the flour until the dough forms a ball. Cover the dough and refrigerate for 30 mins to 1 hour. Let rise until double in bulk.
Roll out on a floured board to 1/2 inch thick. Cut out dough using doughnut cutter or drinking glass and centre the whole. Set on floured baking sheet, cover lightly with a tea towel, and let rise for 10 mins.
Heat your oil for frying in a deep and wide, heavy-bottomed frying pan over medium-high heat.
Slide dough slowly into the oil to avoid splattering and Deep Fried until they puff up and are golden brown.
Carefully remove and allow to cool until you can handle them. Then dust the doughnuts with powdered sugar until covered or coat them with melted cooking chocolate.