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Pour a fourth of the milk into a large bowl.
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Sprinkle the yeast over the milk and let it sit for 5 minutes.
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In a separate bowl, combine the remaining ¾ of milk with the sugar, butter, and apple cider vinegar.
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Add mixture to the yeast and stir well until evenly combined.
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Add in the food coloring.
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Stir in the flour and salt until mixture thickens and the dough starts forming.
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Knead dough until smooth.
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Cover with plastic wrap and let the dough sit for up to an hour so it can rise.
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Roll the dough out on a lightly floured surface.
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Cut out outer circles using a round shaped cookie cutter and inner circles using a similar cutter but smaller.
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Place donuts on a cookie sheet.
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Preheat oven to 375 degrees and bake for 10 minutes.
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Remove from oven and let cool.
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Prepare the topping by blending together the cream cheese and powdered sugar with a hand blender.
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Slowly work in the milk, stop blending, and whisk until mixture thickens.
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Dip donuts into the glaze and let sit for a minute.