Combine the ½ cup sugar and pumpkin spice in a medium bowl and set aside.
Pre-heat the oil (approx. 2.5″ deep) to 375 degrees (stove top or Small Deep Fryer).
Whisk the milk, egg and vanilla together in a small bowl. Set aside.
Whisk the flour, sugar, baking powder, salt and pumpkin spice together in a large bowl.
Add the wet ingredients to the dry ingredients and stir.
Fold in the melted butter until a soft dough forms.
Line a large plate with paper towels (to soak up excess oil) and set aside.
Roll the dough into small balls (walnut size).
Fry 4-5 doughnuts at a time until they are golden brown. Remove them from the oil and immediately roll them in the sugar coating. Place on the paper towel lined plate to soak up the excess oil.
Repeat until the dough is gone. Makes about 20-24 doughnut holes.