HEAT evaporated milk and shortening in small saucepan or in microwave just until shortening is melted. Do not boil.
COMBINE flour, baking powder and salt in medium bowl. Make a well in the center. Pour warm evaporated milk into well; stir with a wooden spoon until soft dough is formed. Turn the dough out onto a very lightly floured surface; knead until dough is soft and pliable (some drops of water may be needed). Cut dough into 12 equal pieces; roll each piece into a ball. With rolling pin, roll out each ball into a circle about 1/4-inch thick. Shape circles with your hands and with your finger; poke a hole in the center of each circle.
HEAT oil in large skillet until temperature of 350º F is reached. Carefully drop 4 dough rings into hot oil. Fry until golden brown in color, about 1 to 2 minutes each side. Remove doughnuts and drain on paper towels. Repeat with remaining dough rings. Sprinkle with powdered sugar. Serve warm with Carmelized Milk (Dulce de Leche), fruit marmalade or plain.