In a small bowl, combine the lukewarm water and active dry yeast. Let it sit for about 5 minutes until it becomes frothy.
In a large mixing bowl, whisk together the granulated sugar, beaten egg, evaporated milk, and the activated yeast mixture. Mix until well combined.
In another bowl, whisk together the bread flour and salt. Gradually add the flour mixture to the wet ingredients, stirring until a soft dough forms.
Turn the dough out onto a floured surface and knead it gently for about 5-7 minutes, or until it becomes smooth and elastic.
Place the kneaded dough in a greased bowl, cover it with a clean kitchen towel, and let it rise in a warm place for about 1-2 hours, or until it has doubled in size.
Once the dough has risen, punch it down to release the air. Roll it out on a floured surface to about 1/4 inch thickness. Cut the dough into squares or diamonds.
In a deep pot, heat the vegetable oil to 350°F (175°C). Use a kitchen thermometer to ensure the oil reaches the right temperature.
Carefully drop the dough pieces into the hot oil, frying them for about 1-2 minutes per side, or until golden brown and puffed.
Using a slotted spoon, remove the beignets from the oil and place them on a cooling rack. Dust them generously with powdered sugar while warm.
Serve your warm beignets immediately, either plain or with a drizzle of chocolate or caramel syrup for dipping.
