In a small bowl, combine yeast to 1/2 cup of warm water (105-110 degreesF) and let sit for 15 minutes until foamy.
In the bowl of a stand mixer, add in flour, sugar, salt, butter, remaining water and yeast mix to form a stiff but soft dough.
Knead for 5-7 minutes with bread hook attachment. Can also do it by hand, knead 8-10 minutes.
Place in a greased bowl, cover with a towel and let rise in a warm place until double in size.About one hour.
Punch dough down and knead again several times.
Roll out dough to 1/4 inch thick with a rolling pin and cut into strips and then squares with a knife or pizza cutter.
Heat oil in a frying pan (about 1 inch of oil)
Drop into hot oil (350 degrees F) and deep fry until golden brown and cooked through. They will "pop" or inflate. Place on a paper towel to drain some of the oil.
Serve with powdered sugar and honey. Best serve warm.