In my Brooklyn neighborhood, I'm lucky enough to live blocks from a Polish market that fills its windows with stacks of doughnuts every day at 6:00 a.m.
Transfer dough to a greased bowl, cover, and let rest in a warm spot for 1 1/2 hours, or until doubled in size.
(Sprinkle dough with a bit more flour if difficult to roll.) Using a 3" or 4" round cutter, trim the dough into rounds.
Transfer rounds to a parchment lined baking sheet, then re-roll the scraps and repeat with remaining dough.
In a small bowl, combine 1 cup confectioners' sugar with 3 tablespoons water.