Step 1: In a large mixing bowl, combine the warm milk, sugar, and yeast. Let it sit for 5-10 minutes until frothy.
Step 2: Add the melted butter, egg, and salt. Gradually stir in the flour until a soft dough forms.
Step 3: Knead the dough on a floured surface for 8-10 minutes until smooth and elastic, then place in a greased bowl, cover, and let rise in a warm place for 1 hour.
Step 4: Punch down the dough and roll it out to 1/2-inch thickness. Cut into circles using a 3-inch round cutter.
Step 5: Place the rounds on a parchment-lined baking sheet, cover, and let rise for another 30-45 minutes.
Step 6: Heat vegetable oil in a large pot or deep fryer to 350°F (175°C).
Step 7: Fry the donuts 2-3 at a time for about 2 minutes per side until golden brown.
Step 8: Remove with a slotted spoon and drain on paper towels. Let cool completely.
Step 9: Whisk together powdered sugar and milk to create a thick white glaze.
Step 10: Dip the top of each cooled donut into the white glaze and set on a wire rack to firm up slightly.
Step 11: Squeeze a blob of red decorating gel in the center of each donut and drag it out to look like splatters.
Step 12: Press a gummy eyeball into the center of the red gel and serve your scary creation!