In a large mixing bowl, combine the warm milk, 1 teaspoon of granulated sugar, and active dry yeast. Stir gently and let it sit for 5-10 minutes until foamy.

In a separate medium bowl, whisk together the gluten-free flour blend, the remaining ¼ cup of sugar, and salt. If your flour blend does not contain xanthan gum, whisk it in here as well.

Once the yeast is foamy, add the lightly beaten egg, melted butter (or oil), and vanilla extract (if using) to the yeast mixture. Whisk briefly to combine.

Gradually add the dry ingredient mixture to the wet ingredient mixture. If using a stand mixer, use the paddle attachment and mix on low-speed until just combined. If mixing by hand, use a sturdy spoon or spatula. The dough will be very soft and sticky—don’t add too much extra flour!

Cover the bowl tightly with plastic wrap or a clean kitchen towel. Place it in a warm, draft-free spot to rise for 1 to 1.5 hours, or until doubled in size.

Once risen, gently punch down the dough to release some air. Dust a clean work surface with gluten-free flour. Turn the sticky dough out onto the floured surface, dust the top, and your hands lightly with more gluten-free flour.

Gently pat or roll the dough into a rectangle about ½ inch thick. Cut the dough into 2-inch squares or rectangles.

Place the cut beignet squares onto a lightly floured baking sheet, spacing them apart. Cover loosely and let them rest in a warm place for 20-30 minutes.

While the beignets are resting, heat the oil in a large pot or Dutch oven to a depth of 2-3 inches until it reaches 350-360°F (175-180°C).

Carefully lower 3-4 beignets at a time into the hot oil. Fry for 1-2 minutes per side, or until golden brown.

Remove the beignets and drain excess oil on a wire rack lined with paper towels.

While still warm, dust generously with powdered sugar and serve immediately.