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Pour two inches of oil into a pot and begin heating it to 375°F. Set up a wire rack over a sheet tray with a piece of paper towel nearby.
Mix the Bisquick and cocoa powder until well combined. Once the oil nears 375°F, lightly flour a work surface. Pour the water into the dry ingredients. The dough will be thick, but mix it until no more dry powder remains.
Put the dough onto the floured surface and flip it over to get flour on both sides. Use a rolling pin to roll out the dough until it’s a half-inch thick. Use a large and small round cookie or biscuit cutter to cut out large doughnuts and doughnut holes. Fry each of the large doughnuts for one minute per side. Dab them on the paper towel and then place them on the wire rack to cool. Fry five or six of the doughnut holes together at a time for about 45 seconds. Be sure to dunk them repeatedly so they cook evenly. Repeat this with all the doughnuts.
While the doughnuts cool, make the icing. Mix all of the icing ingredients together until you get a smooth glaze. Working one at a time, add a doughnut to the bowl and use a spoon to scoop the icing over the top until it’s completely covered. Lift it out of the bowl with a fork and move it to dry on the cooling rack. Allow all of the doughnuts to dry for at least 10 minutes before devouring.