Mix all dry ingredients together.
In separate bowl, mix together softened unsalted butter, milk, eggs, and caramel extract.
Blend with dry ingredients.
Let dough rise for an hour or more, 'til doubled in size.
Roll dough out onto floured surface, and cut with donut/donut hole cutter. (TIP: If you don't have a donut hole cutter, cut the top off a plastic soda bottle and wash. Use the opening of the soda bottle to cut out donut holes, works like a charm!)
Place donuts on cookie sheet and let rise 'til doubled in size.
Meanwhile, mix up icing, blending all ingredients together.
Fry at 350° or at the direction of your deep fryer instruction manual. You could also fry in a skillet in a couple inches of oil.
Let donuts/donut holes drain on paper bags.
While still warm, dip in icing.
Set on rack over wax paper to drip and cool.
Serve and enjoy!