Lay biscuits on a cutting board and cut center hole with a 2-inch round cookie cutter.
Drop 2 biscuits at a time into the hot oil. Let cook for 30 seconds or until golden brown on each side. Place on paper towels to drain. Repeat until all donuts and donut holes are cooked.
In a bowl, mix the sugar and milk for a smooth glaze consistency. Pour ½ inch of coconut or sprinkles into a pie dish. Dip cooled donuts in glaze then dip into topping. Let set a few minutes before serving.