Combine water, milk, and yeast in mixing bowl. Let stand five minutes or til foamy.
Add remaining ingredients, adding the flour last. Mix it until it a soft dough is formed.
Sprinkle with a dusting of flour and allow to rise 2 hours or until dough has doubled in size.
Roll dough into a 12x18 inch rectangle. Cut into 24 rectangles, 6" long.
Fry in oil 2-3 minutes per side. You will need to turn them because they float.
Prepare frosting by combining powdered sugar, butter, milk, and maple flavoring and whip until smooth and creamy.
Frost cooled donuts and enjoy!