In a bowl, combine warm water with a teaspoon of sugar, sprinkle the yeast and stir until foamy.

In a mixing bowl, whisk together gluten-free flour blend, remaining sugar, salt, and xanthan gum if needed.

In a separate bowl, mix warm milk, melted butter, eggs, and vanilla extract until smooth.

Combine the foamy yeast mixture with the dry ingredients, then add the wet mixture and mix until sticky.

Transfer the dough to an oiled bowl, cover with a damp cloth, and let it rise in a warm area for 1 to 1.5 hours.

Roll the risen dough into a rectangle, cut into squares, and let rest for 20-30 minutes.

Heat oil in a pot to 360-375°F and fry the squares for 1-2 minutes on each side.

Drain fried beignets on paper towels and dust with powdered sugar while still warm.