Combine flour and 1/3 cup sugar in a large mixing bowl, and make a well in the center. Place 1/4 cup warm water, 1 ounce fresh yeast, and 1 tablespoon sugar into the well. When yeast begins to bubble, add egg and margarine to the bowl.

Begin to mix the dough and when the ingredients are somewhat blended, add the lemon rind. Mix well. Slowly add water, starting with 1/3 cup. Knead the dough, and add more water, if necessary, to create a smooth, soft dough.

Allow the dough to rise for 75 minutes. Roll out the dough on a lightly floured surface, to one inch thickness. Using a cup, cut out circles from the dough. Let rise for 20 minutes.

Heat three to four inches of oil (See tip below) over a medium flame in a four quart saucepan. Drop in dough circles and deep-fry two to three minutes per side. With a slotted spoon, remove doughnuts from oil and drain on paper towels. Cool.

Decorate with confectioners’ sugar or fill with custard, jelly, or caramel.