Sprinkle the yeast over the warm water, and let stand for 5 minutes, or until foamy. In a large bowl, mix together the yeast mixture, milk, sugar, salt, eggs, shortening, and 2 cups of the flour. Mix for a few minutes at low speed, or stirring with a wooden spoon. Beat in remaining flour 1/2 cup at a time, until the dough no longer sticks to the bowl. Knead for about 5 minutes, or until smooth and elastic.
Place the dough into a greased bowl, and cover. Set in a warm place to rise until double. Dough is ready if you touch it, and the indention remains. Turn the dough out onto a floured surface, and gently roll out to 1/2-inch thickness. Cut with a floured doughnut cutter. Let doughnuts sit out to rise again until double in size. Cover loosely with a cloth.
Heat oil to 375°F. Slide doughnuts into the preheated oil two at a time. Turn doughnuts over as they rise to the surface. Fry each doughnut about 90 seconds per side. Remove from hot oil, to drain on a wire rack. Dip doughnuts into the glaze while still hot, and set onto wire racks to drain off excess. Keep a cookie sheet or tray under racks for easier clean up.
1/3 cup butter
2 cups confectioners sugar
1 1/2 teaspoons vanilla
4 tablespoons hot water or as needed
Melt butter in a saucepan over medium heat.
Stir in confectioners sugar and vanilla until smooth.
Remove from heat, and stir in hot water one tablespoon at a time until the icing is somewhat thin, but not watery. Set aside.