In a small bowl, dissolve sugar in warm water. Sprinkle in yeast; let stand for 10 minutes or until frothy.

 In a large mixing bowl, combine hot water, canola oil, sugar, salt and evaporated milk. Stir to dissolve sugar.

 Add dissolved yeast and egg. Stir in 2 cups (500-ml) flour and beat until smooth. Add remaining flour to make soft dough. Chill for up to 24 hours in the refrigerator.

 Roll out to ⅛ inch (3-mm) on a floured surface, cut into 2-inch (5-cm) squares. Heat oil to 375 F (190 C).

 Fry 3 or 4 beignets at a time for 2 to 3 minutes per side or until each side puffs out and is golden brown. 

Drain on paper towels and sprinkle with icing sugar or colored sugar. Serve warm.

Source: canolainfo.org