In a large bowl, add warm water and yeast. Add evaporated milk, egg, vanilla, oil, sugar, and salt. Whisk to combine. Mix in flour, beating until thoroughly combined and a sticky dough forms.
Add enough oil to a large heavy-bottomed saucepan so that it is about 2-inches deep. Heat oil over medium-high heat to 370°F, adjusting heat as needed to maintain temperature.
On a floured surface, roll out one-third of the dough to ¼-inch thickness using a floured rolling pin. Cut dough into squares or other desired shape about 2-inches by 2-inches.
Gently drop 3-4 squares of dough into hot oil, one at a time, watching the thermometer closely. If the temperature drops below 370°F, wait until the temperature comes back up before adding any more dough to the oil. Cook dough in hot oil for about 1 ½-2 minutes, until golden and puffed up before using a mesh sieve to flip dough over. Cook the second side until golden, about 2 more minutes.
Drain on paper-towel lined platter. Repeat with remaining dough until all beignets are cooked, continuously adjusting the heat to maintain temperature. If the oil isn’t hot enough, the beignets will turn out heavy and oily. If too hot, they will be done on the outside but uncooked inside.
Sprinkle beignets generously with confectioners’ sugar and serve warm.
Notes
Dough can be prepared and refrigerated for up to 3 days prior to frying. Let come to room temperature before frying.
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