In a big bowl, mix together flour, sugar, and salt. Make a well in the middle.
Pour in milk, beaten egg and melted butter into the well. Add the instant dry yeast to the liquid pool and stir using a wooden spoon within the well just to hydrate the yeast a bit.
From inside the well, stir outward to mix the dry ingredients to the wet ingredients until a sticky dough forms.
Tip the dough on a floured surface and knead until it becomes smooth and elastic, about 7-10 minutes.
Form the dough into a ball and lightly coat with oil. Place it in a bowl and cover with a kitchen towel or plastic wrap and place it in a warm area and let it rise until it doubled in size. Depending how warm it is, could take 30 minutes to an hour.
Punch down the dough and divide into 2 equal parts using a knife or dough slicer. Roll each into a log. Cut each log into 8 smaller pieces, making 16 pieces in total. Cover the pieces with a damp kitchen towel or plastic wrap so they will not dry out.
Take a piece and roll it on a surface back and forth with a palm of one hand starting from the middle so it rolls out about 8-inch long. Now, use both hands to roll one side upwards and the other half downwards until it is 12 inches long. Then lift both ends at the same time and pinch them together. It should automatically twist around each other. Lay it down and twist from one end some more to make about four twists.
Place the twisted doughs on a surface or tray dusted lightly with flour. Cover them with a kitchen towel and let them rise again to almost double.
Start to heat the oil in a pot or deep pan over medium heat. Gently, turn the logs over and let them rise for another 5-10 minutes or until the flattened area puffs again. Fry them in hot oil in 3-4 batches. Fry until the bottom part is golden brown then flip them over and cook until the color of both sides evens out, around 3-5 minutes per batch.
Dredge the fried twisted donuts in sugar. Or place a batch inside a paper bag and add 2 tablespoons of sugar and shake the bag to coat them. You can also add some cinnamon powder to the sugar if you like.
Transfer the coated twisted donuts on a bread basket or plate and serve while still warm and crispy.