Prepare the Dough: In a mixing bowl, combine the flour, salt, sugar, & instant yeast. Gradually add the lukewarm water while stirring to form a smooth batter. The batter should be thick but still pourable. Cover the bowl with a clean kitchen towel and let it rest for about 1 hour. The batter will rise and become bubbly.
Fry the Loukoumades: Heat vegetable oil in a deep pot or frying pan to 175°C. Using a spoon or a small ice cream scoop, drop small portions of the batter into the hot oil. You can shape them into small rounds or use two spoons to create a rustic shape. Fry until golden brown and puffed, about 2-3 minutes per side. Make sure not to overcrowd the pot; fry them in batches. Remove the loukoumades from the oil using a slotted spoon and drain them on paper towels briefly to remove excess oil.
Serve: While warm, dip loukoumades in honey, coat well, and let excess drip. Arrange on a platter, add toppings (nuts, cinnamon, sugar), and serve warm. Enjoy!