In small saucepan, melt butter over low heat. Add strawberry jelly; stir until melted. Transfer to small bowl. Stir in powdered sugar with whisk until smooth. Stir in enough hot water until glaze is thin. Set aside.
In deep fryer or 2-quart heavy saucepan, heat oil over medium heat to 350°F. Separate dough into 8 biscuits. Using small round cookie cutter, cut hole in center of each biscuit.
Gently place 2 or 3 biscuits in hot oil. (Biscuit holes can also be fried!) Fry on one side until golden brown. Gently turn with tongs; fry until other side is golden brown. Immediately dip doughnuts in strawberry glaze; place on cooling rack. Cool 3 to 5 minutes or until glaze is dry before serving.