Prepare the Picarones Dough: Boil sweet potato and squash until very tender. Drain well and mash thoroughly. Let cool slightly. In a small bowl, dissolve yeast and 1 tsp sugar in warm water. Let sit for 5-10 minutes until foamy.

In a large bowl, combine mashed sweet potato and squash. Add flour, remaining sugar, salt, anise seeds, and the activated yeast mixture. Mix well until a sticky dough forms.

Cover the bowl with plastic wrap and let it rise in a warm place for 1 to 2 hours, or until doubled in size.

Prepare the Chancaca Syrup: While the dough rises, combine chancaca, water, cinnamon stick, cloves, and orange peel in a saucepan. Bring to a boil, then reduce heat and simmer for 15-20 minutes, or until the syrup slightly thickens. Remove cinnamon, cloves, and orange peel. Keep warm.

Fry the Picarones: Heat vegetable oil in a large pot or deep fryer to 350-375°F (175-190°C). Lightly wet your hands with water to prevent sticking.

Take a small portion of dough (about 1-2 tablespoons) and form a ring by poking a hole in the center. Carefully drop into the hot oil. Fry 3-4 picarones at a time, turning occasionally, until golden brown and crispy on both sides (about 2-3 minutes per side).

Remove picarones with a slotted spoon and drain on paper towels. Repeat with the remaining dough.

Serve: Arrange warm picarones on a plate and generously drizzle with the warm chancaca syrup. Serve immediately.