Fill a deep skillet or pot about halfway with vegetable oil. Place over medium-high heat until the oil reaches 350 degrees (F). Line a plate with paper towels and set aside.
In a medium bowl whisk together the milk, eggs, and vanilla until well combined.
Add the flour, baking powder, and salt and whisk until smooth.
When the oil is heated pour 1/2 cup of batter into the oil. Move your hand back and forth quickly to create the chunks of dough. If you move too slow it will clump together.
Allow to cook for 1-2 minutes per side or until golden brown. Use a slotted spatula or spoon to flip the funnel cake bites and remove them from the oil.
Place the cooked funnel cake bites on the prepared plate and allow the excess oil to drain off.
Repeat this process until all of the batter has been fried.
Transfer the funnel cake bites to a clean plate and dust with powdered sugar. Serve immediately.