Proof the yeast: In a bowl, mix warm milk, warm water, and sugar. Sprinkle the yeast on top and let it sit for 5–10 minutes until foamy. If it doesn’t foam, start over with fresh yeast.

Make the dough: In a large bowl, whisk the egg, melted butter, vanilla, and salt. Stir in the foamy yeast mixture. Add 2 1/2 cups flour and mix until a shaggy dough forms. Add more flour, a few tablespoons at a time, until the dough is soft and slightly tacky but not sticky.

Knead: Turn the dough onto a lightly floured surface. Knead for 5–7 minutes until smooth and elastic. If it sticks, dust with a bit more flour, but avoid overloading it.

First rise: Place the dough in a lightly oiled bowl, cover, and let it rise in a warm spot until doubled, about 1–1 1/2 hours.

Shape: Punch down the dough and roll it out on a floured surface to about 1/4-inch thickness. Trim the edges and cut into 2-inch squares or rectangles. You should get 18–24 pieces.

Second rise: Transfer the cut pieces to a parchment-lined sheet. Cover with a towel and let them puff for 20–30 minutes. This helps them get that signature airiness.

Prep the air fryer: Preheat your air fryer to 350°F. Lightly spray or line the basket with parchment designed for air fryers.

Brush and cook: Lightly brush the tops of the beignets with neutral oil or melted butter. Arrange in a single layer with space between each piece. Air fry for 5–7 minutes, flipping halfway, until golden and puffed. Repeat with remaining batches.

Finish: Dust generously with powdered sugar while warm. Tap off the excess and serve immediately.