In a large bowl, combine warm milk, active dry yeast, and a pinch of granulated sugar. Let sit for 5-10 minutes until foamy.

Whisk in granulated sugar, egg, vanilla extract, salt, and melted butter until mixed well.

Gradually add flour, one cup at a time, until a soft dough forms. Knead on a floured surface for 5-7 minutes.

Place dough in a greased bowl, cover with a towel, and let rise in a warm place for 1 to 1.5 hours.

Punch down the dough, roll out to 1/4-inch thickness, and cut into squares or rectangles.

Heat vegetable oil to 350°F (175°C) and fry dough squares for 1-2 minutes on each side until golden brown.

Remove beignets, drain on paper towels, and dust generously with powdered sugar before serving.