Combine first 4 ingredients in a large bowl; beat at medium speed until blended. Combine flour and next 5 ingredients; add to sugar mixture alternately with milk, beginning and ending with flour mixture. Stir in applesauce and vanilla. Pour oil to a depth of 2-3 inches in a heavy saucepan; heat to 375 degrees. Drop batter by heaping tablespoonfuls into oil; cook 3 or 4 at a time. Cook 2 minutes on each side or until golden. Drain doughnuts on paper towels; sprinkle with powdered sugar.
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