Heat the Oil:
Pour enough oil into a Dutch oven or heavy-bottomed pot to create a depth of about 2 inches. Heat over medium heat until the oil reaches 365°F to 375°F. Use a candy thermometer to monitor the temperature for best results. Line a baking sheet with paper towels for draining the funnel cakes.
Prepare the Batter:
In a large bowl, whisk together the milk, eggs, sugar, and vanilla until smooth.
In a separate bowl, combine the flour, baking powder, and salt. Gradually mix the dry ingredients into the wet ingredients until the batter is smooth and lump-free.
Fry the Funnel Cakes:
Pour about 1/3 cup of batter into a funnel or a squeeze bottle. Cover the spout with your finger.
Position the funnel a few inches above the hot oil, release your finger, and swirl the batter into the oil in a circular or zigzag motion to create a 6-inch cake.
Fry for about 1-2 minutes per side, flipping once, until golden brown. Remove with a slotted spoon and transfer to the paper towels to drain excess oil.
Finish and Serve:
Generously dust the funnel cakes with powdered sugar while still warm.
Serve immediately and enjoy your crispy, carnival-inspired treat!