Whisk first 4 ingredients in medium bowl to blend. Stir in crystallized ginger and lemon peel.
Whisk sugar, eggs, and vanilla extract in large bowl to blend well. Stir in cream and melted butter.
Add dry ingredients and stir to blend well (dough will be sticky). Cover bowl with plastic wrap; chill at least 1 hour. (Dough can be prepared 1 day ahead. Keep refrigerated.)
Mix sugar and ground ginger in medium bowl to blend.
Line large baking sheet with plastic wrap.
Roll out dough on generously floured surface to 3/4-inch thickness. Using floured 2 1/4-inch cookie cutter, cut out dough rounds. Using floured 1 1/4-inch cookie cutter, cut out hole in center of each large dough round, forming doughnuts. Gather dough scraps and reroll on floured surface. Repeat process, cutting out more doughnuts until all dough is used up.
Place doughnuts on prepared baking sheet.
Line another large baking sheet with several layers of paper towels.
Combine vegetable oil and shortening in heavy large pot. Attach deep-fry thermometer inside pot.
Heat oil mixture over medium heat until thermometer registers 350°F. Adjust heat as necessary to maintain temperature. Using slotted spoon, carefully lower 4 doughnuts into oil. Cook until bottoms of doughnuts are deep golden brown, about 2 minutes. Turn doughnuts over and cook until bottoms are brown, about 2 minutes longer. Using slotted spoon, transfer doughnuts to paper-towel-lined baking sheet to drain. Cool slightly. While doughnuts are still warm, turn to coat in sugar topping. Repeat process with remaining doughnuts.
Serve warm or at room temperature. (Can be prepared 1 day ahead. Cool completely. Wrap in plastic wrap and store at room temperature.)
