Step 1: In a large bowl, whisk together the all-purpose flour, granulated sugar, baking powder, and salt. Set aside.
Step 2: In a separate medium bowl, whisk together the milk, egg, and vanilla extract until well combined.
Step 3: Gradually pour the wet ingredients into the dry ingredients, whisking until just combined. A few lumps are okay; do not overmix. The batter should be slightly thick but pourable.
Step 4: Heat the vegetable oil in a large, deep pot or Dutch oven over medium-high heat until it reaches 350-375°F (175-190°C). Use a candy thermometer for accuracy.
Step 5: Carefully pour the batter into a piping bag or a sturdy plastic bag with a small corner snipped off (or a funnel, if you have one with a stopper).
Step 6: Working in batches, pipe small amounts of batter (about 1-2 inches in diameter) into the hot oil in a circular or zig-zag motion, creating small "bites". Be careful not to overcrowd the pot.
Step 7: Fry for 1-2 minutes per side, or until golden brown and cooked through.
Step 8: Using a slotted spoon or spider, transfer the cooked funnel cake bites to a wire rack lined with paper towels to drain excess oil.
Step 9: Dust generously with confectioners' sugar before serving warm.