Prepare the hotdogs and cheese: If hotdogs are long, cut them in half. Cut mozzarella cheese into sticks similar in length to the hotdogs. Skewer one hotdog and one cheese stick (or just hotdog/cheese) onto each wooden skewer.
Make the batter: In a large bowl, combine the all-purpose flour (1.5 cups), granulated sugar (for batter), and salt. In a separate small bowl, gently whisk the warm milk, instant dry yeast, and egg. Pour the wet mixture into the dry ingredients and mix until a thick, smooth batter forms. Cover the bowl with plastic wrap and let it rise in a warm place for about 30 minutes, or until doubled in size.
Prepare for frying: Pour the Panko breadcrumbs onto a flat plate. In a deep pot or Dutch oven, heat the cooking oil over medium-high heat to about 170-180°C (340-350°F).
Coat the hotdog cheese sticks: Lightly dust each skewered hotdog and cheese with a little extra all-purpose flour. Dip them generously into the risen batter, making sure they are fully coated. Immediately roll them in the Panko breadcrumbs, pressing gently to ensure an even and thick layer.
Deep fry: Carefully place the coated hotdog cheese sticks into the hot oil. Fry 1-2 at a time, turning occasionally, until golden brown and crispy, about 3-5 minutes per side. Ensure the internal temperature reaches a safe level for the hotdog and cheese is melted.
Serve: Remove the fried hotdog cheese sticks from the oil and place them on a wire rack lined with paper towels to drain excess oil. For an authentic Korean street food experience, immediately roll them in granulated sugar (for coating). Serve hot with ketchup and yellow mustard, if desired.
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