To prepare the buñuelos: In a food processor, mix the flour, Bisquick™ and salt for a few seconds. Add the egg, margarine, vanilla and milk. Mix on low for 1-2 minutes or until the dough is smooth and a little sticky.
Flour a clean work surface, and knead the dough until it’s sticky, but easy to remove from hands. You might need to add an extra teaspoon of flour to the dough, but no more than that.
Grease a baking sheet and set aside.
Cut the dough in half, and the two halves in half, etc. until you have 16 small dough balls.
Arrange on the baking sheet making sure the dough balls don’t touch. Cover with plastic wrap and let rest (in the cold oven, for example, where there is no wind) for 30-45 minutes. If it’s a hot day, let rest 30 minutes, and if it’s chilly, 45.
Combine the sugar and cinnamon and set aside.
Line a plate with paper towels, which will be used to absorb the grease once the buñuelos have been fried.
Flour a clean work surface. Take 1 of the dough balls and use a rolling pin to flatten until thin and approximately 5-6 inches in diameter. You will notice that the dough is very elastic. Use your fingers to carefully extend the dough, being careful not to tear it. Arrange the buñuelos on a clean surface.
Repeat until you have finished with all the balls.
Heat 1 cup of oil in a pot over high heat. Once hot, carefully dip each one in the oil; the buñuelo will take shape almost instantly. Fry until the outsides are lightly golden brown, for approximately 10-12 seconds on one side. Carefully flip with wooden tongs and fry for an additional 8-10 seconds. Remove from the oil and arrange on the paper-towel lined plate.
Repeat until you’ve finished with the first 8 buñuelos.
Turn off the stove and let the oil cool a little before disposing. Clean the frying pan with a paper towel to remove any remaining pieces of buñuelo in the bottom of pan. Add the other cup of oil and repeat until you’ve finished preparing the second batch (of 8) buñuelos.
Sprinkle the buñuelos with the cinnamon-sugar mix and coat with caramel or evaporated milk.