Pour the warm milk into a large bowl.

Mix 1 tablespoon of the granulated sugar, the yeast, and a heaping tablespoon of the flour into the milk, mixing with a whisk, until both the sugar and the yeast have dissolved.

Once bubbles have developed on the surface of the milk and it begins to foam, whisk in the butter, salt, egg, nutmeg, and vanilla.

Add the remaining flour and sugar.

Knead the dough by hand in the bowl for about 5 minutes

Divide the dough into 4-5 balls if you want to cook more than one day.

Cover the bowl with plastic wrap and refrigerate the dough for 6–8 hours.

Remove the dough from the refrigerator and roll out on a floured surface to a thickness of 1/4 inch.

Cut into 2-inch squares, cover loosely with plastic wrap, and allow the beignets to rise for about an hour.

Heat the oil in a large deep skillet over high heat until it reaches 350°F.

Use a candy thermometer to check temperature.

Fry the beignets in small batches in the hot oil, turning them every 30 seconds or so with tongs, until golden brown all over.

Use tongs to remove beignets from the oil and drain on paper towels.

Put the powdered sugar into a fine-mesh strainer and dust the warm beignets generously with the sugar.