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For the donuts: In the bowl of a stand mixer fitted with the whisk attachment, combine the warm water, yeast and pinch of the sugar and whisk to combine. Let stand until the yeast is very foamy, about 10 minutes.
Next, add the flour, warm milk, olive oil, salt and remaining sugar and mix until a smooth batter forms, 2 to 3 minutes. Cover and let rise in a warm place until doubled in size, about 1 hour.
Set up your grill for even heat. If using a charcoal grill, build the coals evenly. If using a gas grill, heat both sides evenly.
For the honey syrup: In the meantime, in a small saucepot on the grill, combine the honey, orange peels, orange juice, sugar, cinnamon and a pinch of salt. Bring to a strong simmer and stir to dissolve the sugar. Simmer for 15 minutes, then remove from the heat and set aside.
Heat 4 to 6 inches of canola oil to 350 degrees F.
When the batter is ready, dip a small ice cream scoop into the hot oil to coat, then scoop some of the batter out. Drop into the hot oil and repeat until the donuts are frying comfortably in an even layer. You may need to do this in 2 to 3 batches depending on the size of your pot so you do not overcrowd the pot. Fry until golden brown on all sides and puffed, about 2 minutes per side, using a spoon to flip them. Remove to a draining rack and repeat with the remaining batter.
After the donuts have drained of excess oil, transfer them to a serving platter. Pour the honey syrup all over and sprinkle with the pistachios.
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