Preheat the oven to 325 degrees F. Spray a donut pan with cooking spray, use a paper towel to lightly spread/remove excess spray.
In a small bowl, combine the flour, sugar, baking powder and salt, set aside. Combine the warm milk, egg, LorAnn Coffee Flavor, butter and oil in a larger bowl. Add the dry ingredients into the wet ingredients, stir until just combined.
Transfer the batter to a large piping bag or use a ziploc bag with one corner cut off. Pipe the batter into the donut pan, filling each donut hole about 2/3 full.
Bake the donuts for 8-10 minutes, or until a toothpick comes out clean. Remove from the oven and let the donuts sit in the pan for 10 minutes before moving to a wire rack.
Combine the chocolate and oil in a shallow microwave safe bowl and microwave on 60% power, stirring every 30 seconds for about 2 minutes. You do not want the chocolate to be too runny. Add in the LorAnn Coffee Flavor. If needed, add in some extra vegetable oil because the coffee flavor can thicken the chocolate.
Dip each donut into the glaze, allowing the excess to fall off. Let the donuts sit for a few minutes, allowing the glaze to harden before dusting the donuts with espresso grounds.