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In a large bowl, mix all dry ingredients.
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Beat egg, milk, and vanilla together in a separate bowl.
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Add milk mixture to dry ingredients beating until smooth.
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Fill 8" skillet with 1 inch oil and heat to 375 degrees.
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Cover funnel hole with finger and fill with about 1/4 cup of batter.
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Hold funnel over skillet and remove finger moving funnel around to form patterns with the batter.
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Fry until golden brown, about 1 or 2 minutes.
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Turn over with tongs and continue frying another minute or two or until both sides are brown.
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Remove from oil, drain on paper towels, and sprinkle with powdered sugar.
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Serve hot.