Combine yeast and warm water in a bowl and let it sit for 5 minutes until it becomes bubbly.

In a separate bowl, mix together the sugar, eggs, milk, melted butter, and vanilla extract. Add in the yeast mixture.

Gradually add the flour and a pinch of salt to the wet ingredients, mixing until the dough comes together.

Knead the dough until it is smooth, about 5-7 minutes.

Place the dough in a greased bowl, cover it with a cloth, and let it rise in a warm spot for about 1 hour, or until it doubles in size.

Roll out the risen dough on a floured surface to about ½ inch thick. Cut the dough into squares or rectangles.

Heat oil in a deep pan to 350°F (175°C) for frying.

Carefully add a few dough pieces to the hot oil, frying until golden brown on both sides.

Use a slotted spoon to remove the beignets from the oil and let them drain on paper towels.

Dust with powdered sugar before serving.