Combine flour, baking powder and salt in large bowl. Combine water, oil and dry milk powder and stir into flour mixture until smooth dough forms. Turn out onto lightly floured surface. Knead 4 times into smooth ball. Cover and let rest 10 minutes.
Divide dough into 8 balls. Flatten with fingertips or roll out each ball to form 8- to 10-inch round. Make small hole in center of each with finger or handle of wooden spoon. Lightly flour rounds, stack and cover with towel or plastic wrap. Heat about 1 inch oil to 375 F in large skillet. Gently place 1 bread round in hot fat and cook until golden and crisp, 1 to 2 minutes on each side. Drain on paper towels. Repeat with remaining dough. Serve bread hot or at room temperature, sprinkled with cinnamon sugar.