Preheat your oven to 350 degrees. Fill donut pan with 1 ½ cups of shredded cheese. Place in the oven for 3-5 minutes or until just melted. Allow to stiffen about 10 minutes.
Remove half of the cheese discs and place on top of the other half. Refrigerate and repeat with the rest of the cheese. Refrigerate for 30 minutes.
Crush your Funyuns until fine. Place in a loaf pan. Place flour in another shallow pan. In a bowl, whisk together eggs and water. Dip cooled donuts in flour, then egg, and then crushed Funyuns. Place donuts in fridge while you heat up your oil.
In a medium pot, heat up canola oil to 350 degrees. Dip donuts carefully in the oil for 2-4 minutes or until golden. Allow to drain before putting on a plate.
Serve on a large plate with marinara sauce and ranch. Devour speedily.