Using a mixer, combine the ghee & sugar together in a bowl.
Add the egg & vanilla extract to the mixture & combine.
In a separate large bowl, sift 1/3 of the flour then add the salt, and baking powder to the remaining flour and sift to combine.
Slowly begin adding the dry mixture into the wet & mix, add the milk, repeat until dough is fully formed and make sure not to overwork (don’t stir too much, just until mixed)
Add a sprinkle of flour to a butchers block & roll dough out evenly, not too thin.
Use donut cutter or get crafty with it, like me & use what you have on hand to cut out the donut from the dough! I used the rim of a cup and the top of a jar.
Heat the coconut oil in your cast iron skillet on medium heat. begin frying the donuts - keep an eye on them, they can cook quickly. Flip to other side until golden brown & remove from skillet, place on a wire rack.
Let the donuts cool & make the icing. in a separate bowl, combine powdered sugar, vanilla extract & milk until smooth and desired consistency. For thicker icing, add less milk, for thinner icing, add more milk.
Dip the donuts into the icing mixture, let stand for a minute.
Enjoy!