Traditional Dutch oliebollen (literally, "oil balls") have often been called the precursor of the doughnut, the popular American treat. It seems very probable that early Dutch settlers took their tradition over to the New World where it evolved into the anytime-anywhere snack the doughnut is today. In Holland, they pretty much remain a seasonal treat, made and enjoyed specifically to ring in the New Year.
In a small bowl, mix 1 teaspoon granulated sugar into the water. Sprinkle the yeast on top and allow to stand for 10 minutes (if the yeast doesn't bubble, discard and buy new yeast. The lack of bubbles means the yeast is no longer active).
In a large bowl, combine the flour and remaining 1/4 cup sugar. Make a well in the center. Add the eggs and the yeast mixture to the well.
Warm up the milk in the microwave until it is lukewarm. Add half of the milk to the well. Mix until all the ingredients are combined. Add the rest of the milk, and mix until smooth.
Cover the bowl with a damp dishtowel and allow to rise in a warm area for about 1 hour. Once the dough has doubled, stir in the salt and let sit while you heat the oil. The dough will be wet, which is normal.
Heat about 3-inches of oil in a large, heavy duty pot or deep fryer to 350 F. To check whether the oil is at the right temperature, stand the handle of a wooden spoon in the oil. If little bubbles form around it, the oil is ready.
Quickly dip 2 tablespoons into the oil and form small balls of the dough with the oiled tablespoons, carefully scraping and dropping the dough into the hot oil. The oliebollen will sink to the bottom of the pan and then pop right back up. You should be able to fry at least 6 at a time, but don't crowd the pot.
Fry until golden brown on both sides, carefully flipping when required. Drain on a tray lined with paper towels.
Sift confectioners' sugar over the oliebollen as well as a dusting of ground cinnamon and serve warm.