In a mixing bowl, whisk together flour, sugar, baking powder, and salt. Create a well in the center and add milk, vanilla extract, and egg. Mix until a sticky dough forms.

Knead gently on a floured surface for about one minute until smooth.

Roll out to 1/2 inch thick and cut into squares or circles.

Preheat air fryer to 350°F (175°C) and lightly spray the basket with nonstick cooking spray.

Air fry beignet pieces in batches for 5-7 minutes until golden brown and puffed up.

Dust with powdered sugar before serving warm.