Preparations

1. In a glass measuring cup, combine milk, yeast and 1 tsp sugar. Proof for 5-10 minutes.
2. Meanwhile, to the bowl of a stand mixer, add remaining sugar, flour, salt, shortening, egg and vanilla. With mixer running on low-medium speed, slowly add yeast mixture. Increase speed as needed, mixing until dough comes together. Dough may be sticky. Lightly grease your hands and a medium bowl with baking spray. Shape dough into a ball, transfer to prepared bowl. Cover and allow to rise in a warm location until doubled in size, roughly 45 minutes.
3. Prepare a baking sheet with a sheet of parchment paper, lightly greased with baking spray.
4. Roll out dough on a lightly floured surface to between 1/4 and 1/2-inch in thickness. Cut out donuts using desired sized donut cutters. Transfer dough to prepared baking sheet. Allow dough to continue rising while heating oil in a large stockpot to 325°F, monitoring with a thermometer for accuracy.
5. Fry 2-3 donuts at a time, cooking each side until lightly golden. Remove to a paper towel or wire rack. Repeat with remaining dough.
6. In a medium bowl, beat together icing ingredients. Dip cooled donuts in icing. Immediately sprinkle with cooked, chopped bacon.