In a large mixing bowl, combine 1/2 cup of warm milk, 2 tsp of active dry yeast, and a pinch of granulated sugar. Stir gently and let stand for 5-10 minutes until foamy.

Once foamy, whisk in 1/4 cup of granulated sugar, 1 large egg, 2 tsp of vanilla extract, and a pinch of salt. Gradually add 1/4 cup of melted unsalted butter and mix well.

Add 3 1/2 to 4 cups of all-purpose flour gradually until a soft dough forms. Turn out onto a floured surface and knead for 5-7 minutes until smooth and elastic.

Place the kneaded dough in a greased bowl, cover with a damp cloth, and let rise for 1 to 1.5 hours until doubled in size.

After rising, punch down the dough and roll out to 1/4 inch thickness. Cut into 2-3 inch squares.

Heat vegetable oil to 350°F. Drop the beignet squares into the hot oil in batches and fry for 1-2 minutes on each side until golden brown.

Transfer cooked beignets onto paper towels to drain excess oil and dust with powdered sugar while warm.