01 - Combine warm water, milk, and yeast in a small bowl. Let stand for 5 minutes until mixture becomes foamy, indicating the yeast is active.
02 - In a large mixing bowl, whisk together flour, sugar, and salt until thoroughly combined.
03 - Add eggs, melted butter, vanilla extract, and the activated yeast mixture to the flour mixture. Stir until a sticky, cohesive dough forms.
04 - Turn dough onto a lightly floured surface. Knead for 5–7 minutes until smooth and elastic, adding minimal flour only if dough is excessively sticky.
05 - Place dough in a greased bowl, cover with plastic wrap or a damp towel, and let rise in a warm, draft-free area until doubled in size, approximately 1–1.5 hours.
06 - Punch down risen dough to release air. Roll out on a floured surface to 1/4-inch thickness. Cut into 2-inch squares using a sharp knife or pizza cutter.
07 - Heat oil in a heavy-bottomed pot or deep fryer to 350°F. Use a kitchen thermometer to ensure accurate temperature.
08 - Fry beignets in batches of 4–6 pieces for 1–2 minutes per side until golden brown and puffed. Maintain oil temperature between batches.
09 - Remove beignets with a slotted spoon and drain on paper towels. While still warm, generously dust all sides with powdered sugar.
10 - Serve immediately while warm and freshly coated. For an authentic New Orleans experience, pair with chicory coffee.