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For donuts, place the water, vanilla, butter, sugar, salt, and the orange zest into a medium sauce pan and bring to a simmer. Remove the mixture from the heat and add the flour. Stir with a wooden spoon until the flour is incorporated and begins to pull away from the sides of the pan, about 8 minutes. Place the flour mixture into a large bowl and mix with a hand mixer for 2 minutes. Slowly add the eggs one at a time. The mixture will break apart as you add each egg but will become smooth again once the egg is incorporated. Make sure each egg has been incorporated into the batter before adding the next. Oil a 1-ounce ice cream scoop and scoop batter into the hot oil. Fry the dough balls until they are a deep golden brown on all sides. Remove one and test to make sure that the center is cooked and then remove the rest. Fry in batches, about 8 minutes per batch. Combine the cinnamon sugar ingredients and drop the dough into the sugar mixture once they are fried. Set aside.
For chocolate sauce, bring the milk, orange zest and sugar to a simmer and then turn to low. Remove the orange zest and whisk in the cocoa powder, light corn syrup, and the chocolate chips. Stir until the mixture is smooth.
Serve the chocolate sauce along side of the donuts for dipping.