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In large saucepan, heat 2 to 3 inches oil to 375 degrees. In large bowl, combine first 6 ingredients. Stir in milk, oil, vanilla and egg with a fork just until dry ingredients are moistened. Drop by teaspoonfuls into hot oil (375 degrees), 5 to 6 at a time. Fry doughnuts drops 1 to 1 1/2 minutes on each side until deep golden brown. Drain on paper towels. Mix 1/2 cup sugar and 1 teaspoon cinnamon; roll warm doughnut balls in sugar-cinnamon mixture.
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