In a mixing bowl place the flour, egg yolks, sugar, margarine, vanilla, milk and dissolve the yeast. Knead to a smooth and elastic dough. Cover and let rise in a warm place for about 1.5 hours, or until dough doubles its volume.
Roll out to a circle about 1/2 inch thick. With a 2 inch pastry cutter cut out circles, cover and let rise again.
Heat oil to medium hot. Drop risen donuts into oil, cover and cook for 1 minute. When donuts are golden on one side, uncover pan and turn over. When both sides are done, remove with a slotted spoon and drain on kitchen paper. Inject warmed jam into donuts and sprinkle with powdered sugar.
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