Place active yeast to warm water, give a quick mix and set aside. Mix together all ingredients together. Once a dough has formed, you will need to knead for about 5 - 10 minutes. You should be able to pull at dough and it not tear right away. Cover this a cloth, and let sit for about 30 minutes to an hour. Punch out the air and roll out to about a 1/4 inch. Cut out shapes as close to each other as possible, you can re roll out excess dough and cut out more, until all the dough is used.
Heat oil to about 375 degrees F.
Whisk together sugar, milk and vanilla until smooth. Add your favorite colors to make colored frosting.
Dip warm donuts into frosting, let drip off excess frosting. Then dunk into shredded coconut. Pipe raspberry jelly into middle of donut. Serve.