1. Dissolve yeast in warm water in a large bowl; let stand 5 minutes.

2. Add 3 cups flour, applesauce, and next 6 ingredients; beat at low speed of an electric mixer until moistened.

3. Beat at meduim speed for an additional 2 minutes.

4. Stir in 2 cups of flour, 1/2 cup at a time, to form a soft dough.

5. Turn out onto a well-floured surface.

6. Knead until smooth and elastic(about 5 minutes); add enough remaining flour, 1 tablespoon at a time, to prevent dough from sticking to hands.

7. 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.

8. Punch dough down, and turn out onto a lightly floured surface.

9. Roll dough to 1/2 inch thickness; cut with a lightly floured 2 1/2 inch doughnut cutter.

10. Combine doughnut holes and any remaining scraps of dough; reroll to 1/2 inch thickness and cut as before.

11. Place doughnuts on baking sheets coated with cooking spray; brush 2 tablespoons melted margarine over doughnuts.

12. Let rise, uncovered, in a warm, draft-free place for 40 minutes.

13. Combine 1/2 cup sugar and 1 teaspoon in a large zip-top heavy-duty plastic bag, and set aside.

14. Bake doughnuts at 425 degrees for 8 minutes or until golden.

15. Immediately brush remaining 2 tablespoons melted margarine over baked doughnuts; add doughnuts to plastic bag. Seal the bag and shake to coat.

16. Yield: 3 dozen doughnuts.