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Dissolve yeast in warm water with a pinch of sugar. Let sit for 5 minutes until frothy.
In a large bowl, whisk together the sugar, eggs, milk, melted butter, and vanilla extract.
Gradually add the flour and salt, stirring to form a dough. Knead until smooth.
Let the dough rise in a warm place for 1-2 hours or until doubled in size.
Roll out the dough on a floured surface to about ½-inch thickness. Cut into squares or circles.
Heat oil in a deep fryer or pot to 350°F. Fry beignets until golden brown on both sides, about 2-3 minutes per side.
Remove and drain on paper towels. Dust with powdered sugar before serving.