In a large mixing bowl, combine the warm milk, 1 teaspoon of granulated sugar, and active dry yeast. Stir gently and let sit for 5-10 minutes until foamy.

In a separate medium bowl, whisk together the gluten-free flour blend, remaining ¼ cup of sugar, and salt. Add xanthan gum here if needed.

Once the yeast is foamy, mix in the beaten egg, melted butter, and vanilla extract (if using). Whisk briefly to combine.

Gradually mix the dry ingredients into the wet mixture, mixing on low until just combined. Avoid overmixing.

Cover the bowl tightly with plastic wrap or a towel. Let it rise in a warm spot for 1 to 1.5 hours until doubled in size.

After rising, gently punch down the dough. Dust a clean work surface with gluten-free flour and turn out the dough.

Pat or roll the dough into a roughly ½ inch thick rectangle. Cut into 2-inch squares.

Place the squares on a floured baking sheet and let rest for 20-30 minutes in a warm area.

While they rest, heat 2-3 inches of neutral oil in a pot over medium-high heat until it reaches 350-360°F (175-180°C).

Carefully fry 3-4 beignets at a time for about 1-2 minutes per side until golden brown. Flip gently.

Remove with a slotted spoon and drain on paper towels. Dust with powdered sugar while still warm. Enjoy immediately.