Pour the liquid into your bread machine and add all the other ingredients, then work the dough as per the manufacturer's instructions. If you do not have a bread machine, follow the instructions for my jam doughnuts (please bear in mind that the recipe calls for fresh yeast whereas this one uses dried, meaning that the preparation is a little different).
Disclaimer: I use grams to measure my ingredients. To help out my American readers, I've also included cup measurements. However, I've used online resources which have not been verified personally, so accuracy cannot be guaranteed.