Dissolve yeast in 1/4 cup of the warm milk; let stand 5 minutes.
Combine 1 cup of the flour and remaining 1 cup warm milk in a large mixing bowl,
mixing well at medium speed with electric mixer.
Add yeast mixture; mix well.
Cover and let rise in a warm place (85 degrees F), free from drafts, for 30 minutes.
Combine egg yolks and next 3 ingredients in a small bowl, mixing well; add to
Stir in butter and enough remaining flour to make a soft dough.
Place in a well-greased bowl, turning to grease top.
Cover and let rise in a warm place,
free from drafts, 45 minutes or until doubled in bulk.
Punch dough down; turn out onto a lightly floured surface, and knead several
times. Divide dough in half. Roll one portion to 1/4-inch thickness, leaving other
portion covered; cut 24 circles with a 2 1/2-inch cutter.
Place 12 circles on a
lightly greased baking sheet. Place 1/2 teaspoon preserves in center of each circle.
Brush edges of each jelly-topped circle with water.
Place remaining 12 circles over jelly-filled circles; pinch edges to seal.
Repeat procedure with remaining dough
Cover and let rise in a warm place, free from drafts, 45 minutes
or until doubled in bulk.
Pour oil to a depth of 2 to 3 inches in a Dutch oven; heat to 375 degrees F.
Fry 2 or 3 doughnuts at a time 1 minute on each side or until golden brown.
Drain well on paper towels.
Sprinkle with confectioners' sugar, and serve immediately.