Combine warm milk and yeast in a bowl and let sit 5 minutes until foamy.
Mix sugar, melted butter, egg, vanilla, and salt into yeast mixture.
Gradually add flour and stir until dough forms.
Knead dough 5–7 minutes until smooth and elastic.
Place dough in greased bowl, cover, and let rise 1–2 hours until doubled.
Roll dough to 1/4-inch thickness and cut into squares.
Heat oil to 350°F (175°C) in deep pot.
Fry dough squares 1–2 minutes per side until golden brown.
Remove with slotted spoon and drain on paper towels.
Dust generously with powdered sugar and serve warm.
