In a mixing bowl, combine the bread flour, sugar, and salt.
Add the yeast, egg, and evaporated milk.
Mix until all ingredients are incorporated.
Add the softened butter.
Knead the dough by hand for about 10-15 minutes until smooth and elastic. You may also use a stand mixer if preferred.
Lightly grease the dough with cooking oil.
Cover and let it rise for 1-2 hours or until doubled in size.
Divide the dough into 18-20 equal portions (about 35 grams each).
Flatten each piece slightly.
Place one cube of cheddar cheese in the center.
Pinch the edges tightly and shape into a smooth ball.
Arrange on a tray.
Cover and let rise again for 30-60 minutes until puffy.
Heat cooking oil over low heat.
Fry the donuts until golden brown. Cook slowly to ensure the inside is fully cooked.
Transfer to a wire rack or paper towel.
Let cool slightly.
Mix powdered milk and powdered sugar.
Roll each warm donut in the coating mixture.
Serve while warm and enjoy the cheesy center.