Dissolve yeast in warm water in a large bowl; let stand 5 minutes.
Add 3 cups flour, applesauce, and next 6 ingredients; beat at low speed of an electric mixer until moistened.
Beat at meduim speed for an additional 2 minutes.
Stir in 2 cups of flour, 1/2 cup at a time, to form a soft dough.
Turn out onto a well-floured surface.
Knead until smooth and elastic(about 5 minutes); add enough remaining flour, 1 tablespoon at a time, to prevent dough from sticking to hands.
Place dough in a bowl coated with cooking spray, turning to coat top.
Cover and let rise in a warm place, free from drafts, 1 hour or until doubled in bulk.
Punch dough down, and turn out onto a lightly floured surface.
Roll dough to 1/2 inch thickness; cut with a lightly floured 2 1/2 inch doughnut cutter.
Combine doughnut holes and any remaining scraps of dough; reroll to 1/2 inch thickness and cut as before.
Place doughnuts on baking sheets coated with cooking spray; brush 2 tablespoons melted margarine over doughnuts.
Let rise, uncovered, in a warm, draft-free place for 40 minutes.
Combine 1/2 cup sugar and 1 teaspoon in a large zip-top heavy-duty plastic bag, and set aside.
Bake doughnuts at 425 degrees for 8 minutes or until golden.
Immediately brush remaining 2 tablespoons melted margarine over baked doughnuts; add doughnuts to plastic bag.
Seal the bag and shake to coat.
Yield: 3 dozen doughnuts; serving size= 1 doughnut.
fat From Cooking Light Magazine Holiday 1992 issue Typed by Laura Canada Cooking Echo 01/21/95