Mix yeast, sugar and ¾ cup water in a small bowl. Allow yeast to activate by setting aside in a warm spot for fifteen minutes. Yeast is activated when small bubbles appear on the surface of the water-yeast mixture.
In a large mixing bowl or standing mixer, stir together flour, salt, yeast mixture and remaining ¾ cup water. Knead for ten minutes using the dough hook attachment or by hand on a floured work surface.
The mixture will be sticky. The more you knead the smoother the mixture will become. Do not add more flour to the mixture.
Cover with plastic wrap and allow to rise for 3 to 4 hours, until mixture triples in size.
In a heavy bottom, deep pot or pan heat 2-inches evoo over medium-high heat to 350°F.
Dip your hand in water and pull pieces of dough roughly the size of a small peach. (Sfenj is not meant to be perfect.) Poke a hole in the center of the ball of dough and roll a bit to resemble a rustic bagel.
Fry for 3 minutes, flip and fry for 2 minutes more, until golden brown and puffed. Remove with a slotted spoon and drain on paper towels.
Dip warm sfenj into sugar and serve with coffee or Moroccan mint tea.