Sift together flour, baking powder, sugar, and salt in a large bowl.

In a separate bowl, whisk together milk, water, and egg until well blended.

Gradually add the wet ingredients to the dry ingredients, stirring until the batter is smooth and well combined.

Heat vegetable oil in a deep fryer or heavy skillet to 325°F (163°C).

Carefully drop spoonfuls of batter into the hot oil, frying about 10 at a time, ensuring not to overcrowd.

Fry for 6-7 minutes, until golden brown.

Remove beignets from the oil and drain on paper towels.

Dust generously with powdered sugar using a fine sieve.