To make the donuts, whisk together the water, milk and eggs together until well combined. Then sift together the flour, salt, cayenne and baking powder.
Slowly mix in the dry ingredients with the wet until a dough forms. Then fold in the cheddar and parmesan and chiles until combined.
In a medium sized pot, add oil to about 2-3 inches deep. Heat oil to about 350 degrees F or until you can tet it with a piece of dough and it sizzles.
Use a cookie scoop to spoon dough into oil and fry for 2-3 minutes on each side or until golden brown. When done, remove to a paper toweled lined tray and sprinkle with additional parmesan cheese and chopped green onion for garnish.
To make the sauce, add all ingredients to a small pot and boil for 10min until thickened. Then strain through a fine sieve, discarding cinnamon stick and solids and allow to cool.
Serve donuts with raspberry sauce.