01 - In a large mixing bowl, dissolve yeast and 1 tablespoon of the sugar in warm water. Let stand for 5 minutes until foamy.
02 - Add the remaining sugar, melted butter, milk, egg, and vanilla. Mix until combined.
03 - Gradually add flour and salt, mixing until a soft dough forms.
04 - Turn dough onto a floured surface and knead for 5 to 7 minutes until smooth and elastic.
05 - Place dough in a greased bowl, cover, and let rise in a warm spot until doubled in size, about 1 hour.
06 - Punch down dough and roll out on a floured surface to 1/4-inch thickness. Cut into 2 by 2-inch squares or diamonds using a sharp knife or pizza cutter.
07 - Heat vegetable oil in a deep fryer or large, heavy pot to 350°F.
08 - Fry dough pieces in batches without crowding for 1 to 2 minutes per side, until puffed and golden brown. Turn with a slotted spoon as needed.
09 - Remove with a slotted spoon and drain on paper towels. While still warm, generously dust fried dough with powdered sugar on all sides.
10 - Serve immediately for best flavor and texture.