Take the all purpose flour,yeast in a bowl, add the milk, melted butter, sugar, salt, egg and mix everything together.
Knead the dough well until it turns smooth and slightly sticky.
Place the dough into a greased bowl, cover it, and let it rise for 2 hours.
Lightly flour your working surface and knead the dough for few minutes. Punch the dough and roll the dough 1/2-inch thick with a floured rolling pin.
Cut dough using a round cookie cutter or else with a round glass.
Cover the donuts and let them sit to rise atleast for an hour.
Heat enough oil for frying, and fry the donuts both sides until they turns golden brown.
Sprinkle some powdered sugar on top of the donuts or drop them in powdered sugar.
Meanwhile fill a piping bag with nutella.
Using a skewer or a sharp knife, make a hole on the side of the donut and then fill it with Nutella.