
These cinnamon sugar donut holes with creamy peanut butter dip are the ultimate treat when you need something special but quick. The donut holes turn out golden and pillow-soft, with a cozy cinnamon sugar coating, and they are made for dunking into a lush peanut butter dip. They never last long at parties, and I always find myself frying another batch because everyone just keeps coming back for seconds.
I first made these donut holes for a movie night with my family. Ever since then my kids and their friends beg for them at every get-together. The peanut butter dip is a total game-changer and everyone asks for the recipe.
Ingredients
- All-purpose flour: adds structure to the donuts. Look for unbleached flour for best flavor
- Baking powder: gives lift and lightness to the donut holes. Always use fresh baking powder for proper rise
- Salt: enhances all the sweet notes and balances flavors. Stick to fine sea salt
- Granulated sugar: brings sweetness and helps the exterior crisp up. Use organic sugar for pure flavor
- Ground cinnamon: is the flavor star here. Choose Saigon or Ceylon cinnamon for a warm bold kick
- Whole milk: brings richness and tender texture. Whole milk works best but 2 percent can also be used
- Large eggs: bind everything together and make the dough rich. Opt for fresh farm eggs if available
- Unsalted butter: melted, boosts flavor and gives a soft crumb. Use high quality unsalted butter
- Vanilla extract: rounds out the flavor. Go for pure vanilla extract not imitation
- Vegetable oil: ensures a neutral flavor for frying. Peanut or canola oil is great for frying
- Creamy peanut butter: gives the dip a smooth nutty punch. Choose a no-stir or traditional creamy peanut butter
- Powdered sugar: sweetens and adds silkiness to the dip. Sift before using if lumpy
- A pinch of salt: in the dip sharpens flavor and balances the sweetness
Step-by-Step Instructions
- Mix Dry Ingredients:
- Combine flour, baking powder, salt, sugar, and cinnamon in a large mixing bowl. Whisk thoroughly for even distribution and to add some air to the mixture.
- Mix Wet Ingredients:
- In another bowl, whisk milk, eggs, melted butter, and vanilla together. Make sure everything is well combined for a smooth batter.
- Combine Batter:
- Pour wet mixture into dry ingredients. Gently fold together just until no flour streaks are visible. Overmixing creates tough donut holes, so stop as soon as everything comes together.
- Heat Oil:
- Pour vegetable oil into a heavy pot so it reaches about two inches in depth. Set over medium heat and bring to 350 degrees Fahrenheit. Use a deep fry thermometer for accuracy.
- Fry Donut Holes:
- Scoop small balls of batter using a cookie scoop or tablespoon and drop them carefully into the hot oil, about four to five at a time. Fry for two to three minutes until deep golden brown; make sure to turn them for even cooking.
- Drain:
- Use a slotted spoon to remove donut holes from the oil. Lay them on paper towels to drain off excess oil. This keeps them crisp rather than greasy.
- Coat in Cinnamon Sugar:
- While still warm, roll the donut holes in a mixture of cinnamon and sugar. Toss gently until fully coated. Warm donuts help the sugar stick and create a crisp sweet shell.
- Make Peanut Butter Dip:
- In a small bowl, whisk together peanut butter, milk, powdered sugar, vanilla, and a pinch of salt. Whisk until completely smooth and creamy. Add a splash more milk if you want a thinner consistency.
- Serve:
- Arrange the warm cinnamon sugar donut holes on a platter with the peanut butter dip in a bowl on the side. Serve right away for best taste and texture.

I love how the cinnamon and peanut butter come together - unexpected and totally addictive. I will never forget making these one snowy afternoon with my daughter, who insisted on extra cinnamon for hers.
Storage Tips
If you need to make them ahead, donut holes can be stored in an airtight container at room temperature for up to one day. Warm them in a low oven for a few minutes to bring back their softness. The peanut butter dip can be kept in the fridge; just give it a whisk and bring to room temp before serving.
Ingredient Substitutions
No whole milk? Use two percent or a mix of half and half and water. Gluten free flour blends work if you want to make these gluten free. Almond or cashew butter can easily replace peanut butter in the dip if there are any allergies.
Serving Suggestions
These donut holes are made for parties or movie nights but also work as a fun brunch treat. Pair with hot cocoa for winter gatherings or serve with fresh fruit skewers if you want a little freshness on the platter.
Cultural Context
Donut holes take their cue from classic American fried desserts like state fair donuts, but the cinnamon sugar coating is a nod to Spanish churros. The peanut butter dip adds a playful modern twist that goes over big with kids and grown-ups alike.

Common Questions
- → How do you achieve a light, airy donut hole texture?
Gently mix ingredients to avoid overworking the batter, and fry at a steady temperature to ensure even puffing and softness.
- → Can the donut holes be baked instead of fried?
Frying creates the best texture and flavor, but you may bake at 375°F until golden. The texture will be slightly denser.
- → How do you store leftovers?
Store cooled donut holes in an airtight container for up to two days. Reheat briefly in the oven for best results.
- → Can you substitute other nut butters for the dip?
Yes, almond or hazelnut butters provide delicious alternatives to peanut butter for the dipping sauce.
- → What oil is best for frying?
Use a neutral oil with a high smoke point, such as vegetable or canola oil, for best frying results.
- → Are these donut holes suitable for vegetarians?
Yes, the recipe is vegetarian-friendly, though it contains dairy, eggs, and peanut butter in the dip.