In a medium bowl, whisk together the flour, sugar, baking powder, and salt. In a separate bowl, beat the egg, then add the milk and vanilla. Mix well. Gradually stir the wet mixture into the dry ingredients until you have a smooth, thick batter. Heat oil in a deep pan to 350°F (175°C). Using a spoon or small scoop, drop bite-sized portions of batter into the hot oil. Fry for 2-3 minutes, turning once, until golden brown and puffed. Remove and drain on paper towels. Dust generously with powdered sugar before serving.
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