| Place 1/4 cup warm water in large, warm bowl. Sprinkle in yeast; stir until dissolved. Add remaining water, sugar, butter, salt and 2 cups flour; blend well. Stir in egg and enough remaining flour to make soft dough.
Knead on lightly floured surface until smooth and elastic, about 8 to 10 minutes. Roll dough to 16- ? 8-inch rectangle. With sharp knife, cut into 32 (2-inch) squares. Cut slit, about 1/4-inch deep and 1-inch long, on top of each square. Place squares, cut-sides up, on two large greased baking sheets. Cover; let rise in warm, draft-free place until doubled in size, about 45 to 60 minutes.
Pour oil in large, heavy saucepan to 1-inch depth. Heat to 375?F. Place two or three squares in oil. Cook about 1 minute on each side, until golden brown. Drain on paper towels. Repeat with remaining squares. Sift powdered sugar or sprinkle Cinnamon Sugar Topping over warm squares. ++++++++++++++++++++
CINNAMON SUGAR TOPPING: In small bowl, combine sugar and ground cinnamon; stir well.