The dough has to chill for a while so plan ahead.
1 (1/4-ounce) package active dry yeast
1 cup warm water (105* to 115F / 40 to 45*C)
3/4 cup evaporated milk
1/4 cup granulated sugar
1 teaspoon salt
1 large egg
4 to 4 1/2 cups all-purpose flour
Stir together yeast and 1 cup warm water in a 2-cup glass measuring cup; let stand 5 minutes
Stir together yeast mixture, evaporated milk, and next 3 ingredients in a large bowl until blended. Gradually stir in enough flour to make a soft dough. Cover and chill 8 hours.
Turn dough out onto a well-floured surface; knead 5 or 6 times. Roll dough into a 15 x 12 1/2-inch rectangle; cut into 2 1/2-inch squares.
Pour oil to depth of 3 or 4-inches into a Dutch oven; heat to 375F (190C). Fry 3 or 4 beignets at a time, 1 minute on each side or until golden. Drain on paper towels; sprinkle with powdered sugar.
Makes 2 1/2 dozen.