Preheat the oven to 350F/175C degrees. Grease a 12 section mini cake pan or mini loaf pan. Note: if using a mini loaf pan, you may not get 12 cakes out of the recipe.
Into a large bowl, sift together the flour, sugar, baking powder, and salt.
In a small bowl, whisk together the egg, melted butter, zest and juice.
Add the food coloring if using. Mix until well combined.
Stir the milk into the dry ingredients followed by the juice mixture and stir until just combined.
Spoon the batter into the baking pans, filling each one a little more than three-quarters full.
Bake for 15-17 minutes, until a cake tester comes out clean.
Allow to cool for 5 minutes, then tap the cakes out and transfer to a rack to completely cool.
Place baking paper under wire racks to catch the excess icing.
For the icing:
Prepare by mixing the sugar, butter and zest together in a bowl and then add the juice one tablespoon at a time until the desired consistency is reached (I like mine fairly thick).
Dip the cooled cakes into the icing one at a time covering half the doughnuts then place on the cooling wracks.
Add the candies before the icing sets (if using)
Leave on cooling rack to completely set the icing before serving.