Place oil into a medium to large heavy sauce pan or dutch oven. Heat over medium heat, checking temperature every few minutes with a thermometer to monitor.
In a mixing bowl, combine Krusteaz Buttermilk Pancake Mix and milk. Stir to combine but do not over mix. The dough will have a shaggy, not smooth, appearance. Transfer dough to a clean, non-stick surface that has been sprinkled with approximately 1-2 tablespoons of pancake mix or flour.
Gently roll dough to about 1/4" thick. Use a donut or round shaped cutter, or even a glass, to cut out each donut. Use a smaller cutter to cut out donut holes.
When oil is at 375 degrees F, gently slip a donut into the oil. Cook for 1-2 minutes per side, or to a light golden brown. Donuts can cook quickly, so once you see a light golden brown it's time to flip or remove the donut. Once cooked, carefully transfer to a baking sheet or plate lined with multiple paper towels. Repeat steps to cook remaining donuts.