Preheat oven to 350 F. Line a baking sheet with nonstick cooking spray or parchment paper.

In a large mixing bowl, combine the dry cake mix, ¼ cup water, egg and applesauce. Batter should be stiff and not runny.

Mix thoroughly, fill a pastry bag or zip lock bag and cut a small hole to pipe with. Pipe rings along the sheet tray with batter. (They should be a little bigger than a quarter.)

Bake for around 8 minutes or until the donuts start to become golden.

While the donuts are baking, make the icing by whisk together the powdered sugar, meringue powder and water. (if icing is too stiff add just a few drops of water at a time until icing is the consistency to coat)

When done, let donuts cool then drizzle the tops with icing and sprinkles. Let donut icing dry for a few minutes and enjoy with ice cold milk.