Method

1. In a small bowl, combine the warm water, yeast, and sugar. Let stand for 5 minutes, or until the yeast is foamy.
   
   
2. In a large bowl, whisk together the olive oil, flour, and salt.
   
   
3. Add the yeast mixture to the dry ingredients and stir until a dough forms.
   
   
4. Turn the dough out onto a lightly floured surface and knead for 5-7 minutes, or until smooth and elastic.
   
   
5. Place the dough in a greased bowl, cover with plastic wrap, and let rise in a warm place for about 1 hour, or until doubled in size.
   
   
6. Punch down the dough and divide it into 12-15 equal pieces. Roll each piece into a ball.  
   
   
7. Heat about 1 inch of oil in a deep fryer or large pot to 350°F (175°C).
   
   
8. Fry the dough balls in batches for 2-3 minutes per side, or until golden brown.
   
   
9. Remove the sfenj from the oil and drain on paper towels.
   
   
10. Serve immediately, topped with honey or powdered sugar.