I didn't think there were any good donuts in New York City anymore until I found the Donut Plant on Grand Street, a few doors down from Kossar's Bialys.
Here's a quote from their website:
"Light, but not airy, chewy without being tough, the Doughnut Plant's handmade doughnuts are on a higher order than those that are mass-produced. All ingredients are all natural, from the flour to the flavorings. The old-fashioned glazed doughnuts are mixed in small batches, hand-rolled, hand-cut, and fried in pure Canola oil. To finish them, we hand-glaze each doughnut in a colorful palate of all natural flavors. Our doughnuts are made using an heirloom family recipe handed down from our founder's grandfather, Herman Israel, who in his time owned the most popular bakery in Greensboro, North Carolina. Our doughnuts are deep-fried, yeast-raised. very large and very light. Each doughnut is a yeasty, spongy network of pure goodness!"
Rosewater (with fresh rose petals)
Powdered Maple Sugar
Banana with Pecan
Yankee Donut with blueberry pin stripes
You have to get their early because when they only make a few batches a day and when they're gone, they close!