MAKE THE DOUGH: In a small bowl or large pyrex, combine the milk and water, and microwave until the temperature is 105-115 degrees F. Stir in 1 Tablespoon sugar. Sprinkle the yeast on top. Let sit for 5 minutes until foamy.
In a standing mixer fitted with a dough hook, combine the flours, ¼ cup sugar, and salt. Make a well in the middle. Pour into it the yeast mixture.
Mix on low until it comes together into a ball (~2 minutes).
Increase the speed to medium and knead for another 5 minutes. Check the consistency of the dough by gently poking it with your finger.
Tip the dough onto a lightly flour surface. Form the dough into a ball, then transfer to a large, lightly oiled bowl. Cover the bowl with plastic wrap. Refrigerate for 1 hour.
MAKE THE BUTTER BLOCK: In the standing mixer on low-medium speed, beat the butter and ½ cup all purpose flour until smooth.
Lay a large piece of plastic wrap on the counter. Transfer the butter onto the middle of the plastic wrap. Fold over half of the plastic wrap, creating a flat edge of butter along the fold. Refrigerate until ready to use.
Transfer the dough to a lightly floured surface. Roll the dough into a 10" square. Place the butter block in the middle of the square.
Cut halfway through the dough at the butter's edges. Stretch and fold the dough edges over the butter, and pinch the edges together.
Roll into a 10"x20" rectangle. Fold the bottom third of the dough up, then fold the top third down. Pinch the sides together. Turn the dough 90 degrees and refrigerate for 1 hour.
Repeat the folding process two more times, then refrigerate the dough overnight.
The next day, roll the dough into a large rectangle, with ½" thickness. Use a donut cookie-cutter to cut out 8 donuts.
Cover both baking sheets with plastic wrap, and refrigerate for 2-3 hours.
DEEP FRY: Heat oil until it is 350F. Fry the donuts for ~1 ½ minutes on each side. Transfer the donuts onto a cooking rack lined with paper towels.
Once the donuts are cool enough to handle, roll the donuts in sugar.
MAKE THE GLAZE: Whisk all of the glaze ingredients together in a small bowl. Drizzle the glaze over the top of the donuts.
