In a saucepan, simmer 1 1/2 cups apple cider over medium heat until it reduces to 1/2 cup.
Let it cool.
In a large bowl, combine 3 1/2 cups flour, 2 tsp baking powder, 1/2 tsp baking soda, 1 tsp cinnamon, 1/2 tsp nutmeg, and 1/4 tsp allspice.
Mix well.
In a separate bowl, beat 1/4 cup melted butter with 1 cup sugar and 1/2 cup brown sugar until creamy.
Add 2 large eggs, one at a time, then mix in the cooled apple cider reduction and 1/2 cup milk.
Gradually add the dry ingredients to the wet mixture until a dough forms.
Cover and refrigerate for at least 1 hour to firm up.
Roll the chilled dough on a floured surface to 1/2-inch thickness.
Use a donut cutter (or two round cutters) to cut out the donuts. Re-roll the scraps as needed.
Heat oil in a deep fryer or pot to 350°F (175°C).
Fry donuts in batches, cooking each for 1-2 minutes per side until golden brown. Drain on paper towels.
While warm, toss each donut in a cinnamon-sugar mix.
Serve warm and enjoy!