In a food processor (my preferred method) or by hand, add the flour, instant yeast packet, sugar, and salt. Pulse or mix a few times until combined. 

Now, heat the water on low for a few seconds (not boiling). Using a kitchen thermometer, check the temperature. It should be approximately 120-130 degrees. 

Add half the water and all the oil to the dry mixture. Pulse a few times until combined. Now, add the rest of the water tablespoon by tablespoon until the dough is completely combined. It should be soft and slightly sticky. 

Lightly flour a surface and knead the dough for 7-10 minutes. Return the dough to a lightly oiled bowl and cover with a damp towel. Let rise for 1 hour. 

Punch the dough in the middle to release air. Empty out the dough on to a lightly floured surface and knead the dough for 30 more seconds. Roll in to a log and evenly divide the dough in to 8 pieces and roll each piece in to a ball. 

Place a clean dish towel over the dough balls and let them rest for 10 minutes. 

With a rolling pin, roll out the dough until it's about ¼in thick. Stretch out one side slightly in to an oval shape and fold over. Like a taco.

Carefully place each bao bun on a parchment lined baking tray. Continue until all 8 bao donuts are shaped. Cover the tray with a clean dish towel and let rise for 1 more hour. 

Make the caramel sauce by whisking together melted vegan butter, sugar, coconut milk, and vanilla in a pan on medium heat. 

Whisk the caramel occasionally until sugar turns golden and mixture has thickened. About 10-15 minutes. Turn off heat and set aside. 

Fill a large pot with enough oil to cover a few inches above the base.

Heat oil to approximately 360-375F. Turning down heat as needed. 

Mix together cinnamon and sugar in a medium sized bowl. Set aside.

Carefully place a few donuts at a time in to hot oil and fry for 3-4 minutes or until golden brown. Once donuts are fried, immediately toss them in to cinnamon sugar until coated. Remove and return to parchment lined tray. Continue until all donuts have been fried. 

Serve with caramel drizzle if desired!