In a large bowl, combine the flour, sugar, salt, and dry yeast.
Add the warm milk, egg, and vanilla extract, then begin to mix the dough.
Melt the butter and gradually add it to the dough while kneading continuously until you have a smooth, elastic dough.
Cover the dough with a clean kitchen towel and let it rise in a warm place for about 1 hour, or until doubled in size.
On a lightly floured surface, roll out the dough to about 1 cm (½ inch) thickness. Cut into squares using a sharp knife.
In a deep pot, heat the oil to 350°F (180°C). Test the oil temperature with a small piece of dough – if it immediately rises to the surface and gently fries, the oil is ready.
Fry the beignets for 2-3 minutes on each side, until golden brown. Do not overcrowd the pot, so the oil temperature doesn't drop.
Remove the fried beignets and place them on a paper towel-lined plate to absorb excess oil, then let them cool slightly.
Sprinkle generously with powdered sugar and serve immediately for the perfect experience.
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