1. In the bowl of a stand mixer fitted with the dough hook attachment, add warm water and milk, yeast, sugar, flour, egg, vanilla extract, salt and softened butter. Knead for 5 minutes, then transfer to a lightly greased bowl. Spray the top of the dough with nonstick cooking spray, then cover with plastic wrap.

2. Allow dough to rise in warm place for 60 minutes. I like to turn my oven on, then once it reaches 100F, turn the oven off. Place the covered dough in the warm oven. This provides a warm environment for the dough to rise.

3. When the dough is just about done rising, add about 3 inches of oil to a large pot fitted with a candy thermometer, over medium-high heat. Place a few paper towels over a wire cooling rack.

4. Once the dough is done rising, punch dough down, then turn out onto a lightly floured surface. Roll dough into ½ inch thickness, then cut into 20 squares.

5. Once the oil reaches 360F, add 3-4 beignets at a time. Fry until the bottom is golden and puffed, then flip over and fry until golden in color. Remove beignets with a slotted spoon and place on paper towel lined wire cooling rack. Repeat with remaining beignets.

6. When ready to serve, dust the beignets generously with powdered sugar.