In a large measuring cup with a spout, whisk together the milk, egg, water, and vanilla.
Add sugar, baking powder, and salt, then whisk until combined.
Add the flour, and whisk until completely smooth. Set aside.
In a medium, deep-sided pan, heat 1-inch worth of oil to 375°F over medium-high heat.
When you put the end of a wooden spoon in the pot and bubbles form around the spoon, it's ready. Reduce heat to medium.
Drizzle the batter from the cup in a thin line, swirling around the pan and overlapping as desired. Cook for 2 minutes or until light golden brown, then flip and cook another 2 minutes or until golden brown. Repeat one more time with the remaining batter.
Dust the Funnel Cakes with powdered sugar and serve.
Enjoy with family and friends!