To make the donut holes, add yeast, 2 tsp sugar and warm milk in the bowl of a stand mixer. Let stand for 5 to 8 minutes, until the mixture is foamy. Whisk in remaining sugar and eggs.
Add half of the flour and all of the salt to the bowl. Using a dough hook, mix on low until the dough starts to come together. Add the rest of the flour and mix until the dough looks a bit shaggy. Slowly add the butter and beat at medium speed. Knead for about 3 minutes until the mixture is a smooth dough.
Add dough to a bowl that's been greased lightly with oil. Cover with plastic wrap. Place in the refrigerator and let chill overnight.
When you are ready to make the donut holes, flour a flat work surface and roll out the dough to approximately 1/2 inch thick. Using a one inch round cutter, cut out circles and then form those circles into balls. Place them on a parchment lined baking sheet.
Add oil to a large, heavy bottomed pot (I used a Dutch oven) and heat over medium heat until oil is 350˚F.
Fry the doughnuts in batches of approximately 5 to 6 balls. Cook for approximately 2 minutes, rotating to make sure they cook on all sides, until golden brown. Remove when cooked through to a paper towel lined baking sheet.
Stir all ingredients for the icing in a medium bowl until smooth. The icing should be thick enough to stay on the donut holes, while also thin enough to allow excess to easily drip off.
When the donut holes are cooled, dunk each in the icing and place on a rack on a rimmed baking sheet.
Sprinkle with sanding sugars as desired for decoration.