Preheat oven to 350°F and grease a donut pan. In a bowl, mix together all wet ingredients until well combined.
Mix in the dry ingredients until you have a donut batter. Fold in the sprinkles.
Spread the batter evenly into the donut molds and bake for about 15-17 min. Let cool.
If making the paleo frosting, melt together the coconut butter and maple syrup until combined and dip each donut into the mixture. If using regular icing, add water 1 teaspoon at a time into the powdered sugar until you have your desired icing consistency. Dip each donut into the icing. Top with optional sprinkles and enjoy!