Baked Cake Donuts
In a bowl, gently toss warm donuts in 1 cup confectioners' sugar until evenly dusted. Transfer to a wire rack to cool completely; reserve bowl with sugar. Toss cooled donuts in sugar again until thoroughly coated.
Let donuts cool completely. Mix 1 cup confectioners' sugar with 2 tablespoons whole milk; tint with gel food coloring, if desired. Dip top of each donut in glaze (donut should be halfway submerged), turning as needed to evenly coat. Transfer to a wire rack. Top with sprinkles; let dry completely.
Let donuts cool completely. Mix 1 cup confectioners' sugar with 1/4 cup whole milk. Dip donuts completely in glaze to coat, then use a fork or chopstick to transfer to a wire rack. Sprinkle with toasted shredded coconut; let dry completely.