In a small bowl, dissolve yeast in warm water with 1 tablespoon of sugar. Let stand for 5–10 minutes until foamy.

In a large bowl, whisk together flour, remaining sugar, and salt.

Add the egg, softened butter, and evaporated milk to the yeast mixture. Gradually stir in the flour mixture until a dough forms.

Transfer dough to a floured surface and knead for 6–8 minutes until smooth and elastic. Place in a greased bowl, cover, and let rise in a warm place for 1 ½ to 2 hours until doubled.

Punch down dough and roll out on a lightly floured surface to ¼-inch thickness. Cut into 2-inch squares.

Heat oil in a deep fryer or large heavy-bottomed pot to 350°F (175°C). Fry beignets in batches until puffed and golden brown on both sides, about 1–2 minutes per side.

Remove with a slotted spoon and drain on paper towels. Generously dust with powdered sugar before serving warm.