Light over Rosedale, IN

The report, as filed

I had been looking at the stars clearly....there were zero clouds. This light was enveloped in a cloud. I had been watching for a minute or so and it let out another cloud which became doughnut shaped. This cloud became bigger and looked like it was lowering like a funnel...? I began to get scared and called for my friend in the house. It took a couple minutes for him to get outside and in that time, the funnel/lowering part stopped and the cloud became just a doughnut shape. The light had slowed down while the funnel thing was happening but once the funnel stopped, it went back to what seemed to be the same speed, travelling east with the cloud still around it. My friend saw the doughnut cloud and the light with the cloud. We both looked at the light with binoculars but it looked as if it were just a light with a cloud around it. It continued east, travelling with the cloud around it until we couldn't see it anymore. The doughnut cloud just dissipated into nothing and again the sky was cloudless. Also throughout the entire time, there was no sound. I was not sleepy or tired as the neighbors had had a very loud party and it kept me awake. I didn't really freak out about until the next morning when I really thought about what had happened. Do you guys know what that was??

Held as-reported from National UFO Reporting Center (record NUFORC #168790). Witness text is preserved verbatim, including its spelling; nothing is edited beyond formatting.