Tiana's Famous Beignets

3 cups flour

1/3 cup sugar

2 tsp. baking powder

1/2 tsp. baking soda

1/2 tsp. salt

1/2 tsp. nutmeg

1 cup buttermilk

1/3 cup water

1 egg, beaten

1/2 tsp. vanilla

Vegetable oil for frying

powdered sugar for dusting

In a medium bowl, combine 2 3/4 cups of the flour with the sugar, baking powder, baking soda, salt and nutmeg. Whisk together. In a large bowl, whisk together buttermilk, water, egg, and vanilla. Stir in the flour mixture. Use some of remaining flour to dust work surface. Place dough on it and pat into a large 1/2 inch thick square, Dust the top with more flour it sticky. Slice the dough into 2 1/2 inch squares. Heat oil. Carefully drop 3 squares at a time into hot oil. Fry them for 3 minutes, turn them over, and continue frying for 3 more minutes. Use a slotted spoon to transfer to a wire rack and set on top of paper towels to drain. Dust with powdered sugar.