Place milk in a heatproof, microwave-safe jug. Microwave on medium-high (75%) for 30 to 40 seconds or until heated through (do not allow to boil). Stir in 1 tablespoon butter.
Sift flour into a bowl. Stir in yeast, 1/4 cup sugar and 1/2 teaspoon cinnamon.
Make a well in the centre.
Add milk mixture.
Mix to form a soft dough.
Turn out onto a lightly floured surface. Knead for 10 minutes or until smooth and elastic.
Place dough in a lightly oiled bowl. Cover with plastic wrap. Set aside in a warm place for 1 hour or until doubled in size.
Line a baking tray with baking paper.
Using your fist, punch dough down. Turn out onto a lightly floured surface. Knead until smooth.
Press dough out until 2.5cm thick. Using a 6.5cm cutter, cut 12 rounds from dough. Using a 2.5cm cutter, cut circles from the centre of each round. Place doughnuts, 5cm apart, on prepared tray. Cover with lightly greased plastic wrap. Set aside in a warm place for 30 minutes or until doubled in size.
Meanwhile, preheat oven to 200°C/ 180°C fan-forced. Cook doughnuts for 10 to 12 minutes or until golden brown and cooked through.