Combine first 5 ingredients to make a batter. Remove crusts from bread and slice each into fourths.
Dip bread into the batter and fry in hot oil (in a deep skillet or fryer), a few at a time, turning only once. When golden brown, remove to drain on paper towels.
In a clean brown paper bag, put 1/4 cup sugar. Toss Malasadas in bag until well coated. (Alternatively, roll in sugar on a plate.)
Variation: Add 3/4 teaspoon cinnamon and a pinch of nutmeg or mace to sugar for rolling.
Serve warm.
Submitted by: CM