In deep fat fryer or heavy saucepan, heat 2 to 3 inches oil to 350°F.
Separate dough into 8 biscuits; using small round cookie cutter, cut 3 holes out of each biscuit.
Gently place 3 or 4 doughnut holes in hot oil. Fry on one side until golden brown. Gently turn with tongs; fry other side until golden brown. Place on cooling rack; cool 2 to 3 minutes.
In small mixing bowl, stir together powdered sugar, milk and vanilla until smooth. Insert wooden craft stick into each doughnut hole. Spoon powdered sugar glaze over doughnut hole to coat well. Tap off excess glaze. Dip doughnut hole in candy sprinkles to decorate. Place in plastic foam to allow glaze to harden. Repeat with remaining doughnut holes and glaze.