In the previous Halachot we have explained that a small amount of dough must be separated from any dough kneaded from 1,560 grams (a little less than 3.5 lbs.) of flour. This is called the Mitzvah of separating Challah. This Challah should then be destroyed.
Dough Belonging to Several Women
The obligation to separate Challah applies to dough belonging to one person, or even if it belongs to two people, as long as each person has a dough made from the requisite amount of 1,560 grams. This means that if one kneads dough for oneself or one’s family or guests, as long as the dough contains 1,560 grams or more of flour, one must separate Challah. However, if two or three women are kneading a dough this size and then intend to split the dough among themselves to bake it, such a dough is completely exempt from the Mitzvah of separating Challah. Reciting a blessing in this case would be considered a blessing in vain since the Mitzvah does not apply here.
Dough Meant for Cake
A dough comprised of flour, water, oil, eggs, sugar, and fruit juice that is meant for cakes or pastries must have Challah separated, as long as there is at least 1,560 grams of flour in the mixture. (Challah 2:2; Shulchan Aruch, Yoreh De’ah 329:9). If there is no water at all in the dough and only fruit juice, oil, and the like, one should separate Challah without reciting a blessing. (See Halichot Olam, Vol. 5, p. 225)
Dough Meant for Frying
The Poskim disagree about the law regarding whether a dough meant to be cooked or fried requires separating Challah. According to Rabbeinu Shimshon, Rambam, and Rosh, such a dough is exempt from Challah, for the Torah refers to this Mitzvah using the term, “When you shall eat from the bread of the land,” and bread is only considered such when it is baked, as the Torah states, “Ten women shall bake your bread in one oven.” Indeed, Maran Ha’Shulchan Aruch (ibid, 3) rules accordingly. Nevertheless, according to Rabbeinu Tam, such a dough requires separation of Challah.
Although, halachically speaking, we follow the ruling of Maran Ha’Shulchan Aruch and this dough is exempt from Challah, nevertheless, Rabbeinu Yosef Haim (Ben Ish Hai, Parashat Shemini) rules more stringently in this regard and writes that Challah should be separated without a blessing (since Maran does quote the opinion of Rabbeinu Tam in the laws of Berachot). As we said, however, according to the letter of the law, this dough is exempt from Challah. Maran zt”l rules likewise (in Halichot Olam, ibid), as did Hagaon Rabbeinu Ben Zion Abba Shaul zt”l.
Donuts
Based on the above, dough used to fry donuts is exempt from Challah, while our Ashkenazi brethren act stringently by removing Challah without a blessing.
Summary: Dough that will be split among several women and each woman will get less than the prescribed amount for separation of Challah is exempt from Challah. Dough meant to bake cakes, cookies, or pastries that contains water must have Challah separated. If there is no water in the dough, Challah must be separated without reciting a blessing. Dough meant for cooking or frying is exempt from Challah according to the Sephardic custom, while Ashkenazim separate Challah from it without a blessing.