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In a large bowl, combine the milk, eggs and sugar. Combine flour and baking powder; beat into egg mixture until smooth.
In a cast-iron or electric skillet, heat 2 inches oil to 375°. Cover the bottom of a funnel spout with your finger; ladle ½ cup batter into funnel. Holding the funnel several inches above the skillet, release your finger and move the funnel in a spiral motion until all the batter is released. Scrape funnel with a rubber spatula if needed.
Fry until golden brown, about 1 minute on each side. Drain on paper towels. Repeat with remaining batter. Dust with confectioners' sugar. Serve warm with jam.