Golden, crispy Greek donuts (loukoumades) with a light and airy interior, soaked in sweet honey syrup and often sprinkled with cinnamon and nuts. A delightful dessert or sweet treat for two.
In a small saucepan, combine 1/2 cup honey, 1/4 cup water, 1 small cinnamon stick, and 1 strip lemon peel. Bring the mixture to a gentle simmer (cook gently just below boiling, with small bubbles) over medium-low heat, stirring until the honey dissolves. Cook for 5 minutes without stirring. Remove from heat and let the syrup cool completely to room temperature. The syrup should be cold when it is poured over the hot loukoumades (Greek honey donuts). Simmer means to cook gently just below boiling, with small bubbles.
In a medium bowl, whisk together 1 cup all-purpose flour, 1 teaspoon active dry yeast, 1/2 teaspoon granulated sugar, and 1/4 teaspoon salt. Gradually pour in 1/2 cup warm water and 1 teaspoon olive oil, mixing with a wooden spoon or your hands until a sticky batter forms. It should be thinner than bread dough, similar to thick pancake batter. Cover the bowl with plastic wrap or a damp cloth and let it rise in a warm place for 1 hour, or until it has doubled in size and is bubbly. Rising (fermentation) allows the yeast to create air pockets, making the donuts light.
Pour 3-4 cups vegetable oil or canola oil into a deep pot or Dutch oven, ensuring it is at least 3-4 inches deep. Heat the oil over medium-high heat until it reaches 350-360°F (175-180°C). Use a cooking thermometer for accuracy. If you do not have a thermometer, you can test by dropping a tiny bit of dough into the oil; it should sizzle gently and immediately.
Have a small bowl of water and a spoon handy. Dip the spoon in water, then scoop a small amount of the risen dough (about 1 teaspoon) and push it off the spoon into the hot oil. Repeat to drop 8-10 small balls of dough into the oil, or do not overcrowd the pot. Fry for 2-4 minutes, turning occasionally with a slotted spoon, until they are golden brown all over. Loukoumades are Greek honey donuts. Remove cooked loukoumades and place them on a wire rack set over paper towels to drain any extra oil. Repeat with remaining dough.
As each batch of loukoumades finishes frying, immediately transfer them to a serving platter. Drizzle generously with the cooled honey syrup. Sprinkle with 1/4 teaspoon ground cinnamon and 2 tablespoons chopped walnuts. Serve immediately while warm. Loukoumades are best fresh.
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