Prepare the Dry Ingredients: In a large bowl, mix together 2 ½ cups of all-purpose flour, ¼ cup of granulated sugar, 2 teaspoons of active dry yeast, and ½ teaspoon of salt. Stir thoroughly to evenly distribute the yeast and sugar within the flour.
Mix the Wet Ingredients: In another bowl, whisk together 1 cup of warm milk (around 110°F), 1 tablespoon of melted unsalted butter, and 1 tablespoon of pure vanilla extract. Make sure the mixture is warm to the touch, but not hot, to activate the yeast without damaging it.
Combine the Wet and Dry Ingredients: Gradually pour the wet mixture into the dry ingredients while stirring with a wooden spoon. Continue mixing until a dough starts to form and all ingredients are well incorporated.
Knead the Dough: Place the dough onto a lightly floured surface and knead for 8-10 minutes, or until it becomes smooth and elastic. If the dough feels too sticky, add a little more flour as needed.
Let the Dough Rise: Place the kneaded dough into a greased bowl, turning it once to coat all sides with oil. Cover the bowl with a clean cloth and let it rise in a warm, draft-free place for about 1.5 hours, or until it has doubled in size.
Shape the Beignets: Once the dough has risen, punch it down and roll it out on a floured surface to a thickness of about ¼ inch. Cut the dough into 2x2 inch squares using a sharp knife or pizza cutter.
Heat the Oil: Pour about 2 inches of vegetable oil into a deep fryer or large pot. Heat the oil to 360°F, using a thermometer to ensure the correct temperature.
Fry the Beignets: Fry the beignets in batches, making sure not to overcrowd the pot. Cook for 1 to 2 minutes on each side, or until they are puffed up and golden brown. Use a slotted spoon to remove them from the oil and place them on paper towels to drain.
Serve: Dust the freshly fried beignets with powdered sugar and serve them while still hot.
Cooling (Optional): If you’re not serving them immediately, let the beignets cool slightly on a wire rack to help them maintain their crispness.