In a small bowl, combine warm water with sugar and yeast. Let sit for 5-10 minutes until frothy.

In a large mixing bowl, whisk together buttermilk, egg, and melted butter until smooth. Gradually add yeast mixture.

Add flour one cup at a time until a soft, slightly sticky dough forms. Knead gently for 1-2 minutes.

Transfer to a greased bowl, cover, and let it rise in a warm spot for about 1 hour or until doubled.

Roll out the dough to ½ inch thickness and cut into 2-inch squares.

Heat oil in a deep fryer to 350°F. Fry beignets for 1-2 minutes on each side until golden brown.

Use a slotted spoon to transfer cooked beignets to a wire rack to drain excess oil.

Whisk together powdered sugar, milk, and vanilla until smooth. Dip warm beignets into the glaze and allow to set.