1. Simmer the aniseed in the 250 ml of water for 5 minutes, strain and cool to lukewarm; peel and dice the squash and sweet potato, boil in separate water until tender, drain and mash smoothly.
2. Mix the yeast and sugar with 4 tablespoons of the lukewarm anise water and leave for 10 minutes until frothy.
3. In a large bowl combine the lukewarm squash and sweet potato purée, yeast, flour and enough anise water to make a very soft, sticky dough; slap it with your hand for 10 minutes until elastic, then cover and leave in a warm place for 1½-2 hours until doubled.
4. Meanwhile for the syrup, simmer the panela, water, cinnamon, cloves and orange peel for 15-20 minutes until thick and honey-like, then squeeze in a little orange juice.
5. Heat the oil to 180 °C; with wet hands pinch off a small piece of dough, press a hole in the centre with your thumb and drop it into the oil as a ring – fry for 2-3 minutes, turning, until golden.
6. Drain on kitchen paper and serve piping hot, generously drizzled with the chancaca syrup.
Tip: Picarones were born in colonial Lima as a cheap local version of Spanish buñuelos made with squash and sweet potato – keep your hand in a bowl of water while shaping, or the dough will stick.
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