In a large mixing bowl, combine all donut ingredients until well blended. Fill a donut pan ½-¾ full with batter. I like to put my batter in a large ziploc bag and snip off the corner. Makes filling the donut pan much easier (and cleaner). Bake donuts in a 325 degree oven for about 12 minutes. Remove. Cool on wire rack for 5 minutes, remove from pan and cool completely before glazing.
While donuts are baking, add milk, cream and vanilla to a medium sized saucepan over medium-low heat. Stir and heat until warm. Whisk in the gelatin mix and slowly whisk in powdered sugar. Remove from heat.
To glaze donuts, either dip donut tops into glaze and immediately add sprinkles. Or, using a large spatula, spread glaze on top of donuts and add sprinkles, if desired.