Step 1

Sprinkle the yeast over the warm water in a small bowl. The water should be no more than 100 degrees F (40 degrees C). Let stand for 5 minutes until the yeast softens and begins to form a creamy foam. In a large bowl, mix the warm milk, sugar, and salt, and mix to dissolve. Pour the yeast mixture into the milk mixture, and stir to combine.

Step 2

Beat in the butter, eggs, and flour until the mixture forms a smooth, soft dough. Cover the bowl, and let rise until doubled in bulk, about 30 minutes. Stir the dough well, cover, and let rise 30 more minutes.

Step 3

Mix honey and 1/2 cup of water in a saucepan, and bring to a boil over medium-high heat. Turn off the heat and let the honey syrup cool.

Step 4

Heat oil in a deep-fryer or large saucepan to 350 degrees F (175 degrees C). Oil should be about 2 inches deep.

Step 5

Place a large table or soup spoon in a glass of water near the batter. Scoop up about 2 tablespoons of dough per puff with the wet spoon, drop it into the wet palm of your hand, and roll it back into the spoon to create a round shape. Do not overhandle the puffy, soft dough. Drop the dough balls into the hot oil in batches, wetting the spoon each time you make a dough ball. Fry in the hot oil until golden brown on the bottom, and roll them over to cook the other side, 2 to 3 minutes per batch. Gently set the loukoumades aside to drain on paper towels.

Step 6

Place the loukoumades on a baking sheet, drizzle them with honey syrup, and sprinkle with cinnamon. Serve warm.