Stir together your yeast with the water, and milk. Let that sit for five minutes or until foamy. Stir in the sugar, salt, egg, shortening and flour. Beat on medium speed for two minutes or until the dough comes together. Lightly spray a glass dish with cooking spray, place your dough in the dish, cover, and let rise until doubled. This should take 45 minutes to 1 hour.

Roll your dough to 1/2 inch thickness. Cut out your donut shapes and set on a parchment lined pan. Cover and let them rest 15 minutes.

Heat your oil to 350 degrees. Fry each donut for 40 seconds on each side or up to one minute. Donuts are done when slightly browned.

In a small bowl whisk together the butter, powdered sugar, vanilla extract, and water until you get a glaze consistency. Dip each donut, front and back, and place onto a cooling rack to dry.