Pour vegetable oil into a saucepan and place on medium-high heat.
Take the biscuits out of the can and lay them on a cutting board. Use a 1 inch round cookie cutter (or even the cap to an olive oil bottle!) to cut circles from each biscuit. You should be able to get 4 circles from each biscuit. Gently place 4-6 of the donut rounds into the oil. When one side is golden brown, use tongs to flip over and fry the other side.
Take out and let cool on a plate. In a shallow bowl, mix together milk, vanilla and powdered sugar to make a thin glaze.
Pour the sweetened coconut in another shallow bowl. Dip each donut into the glaze and then roll around in the coconut. Place on parchment paper to set.