Activate the Yeast: Mix warm water, milk, and yeast. Let it sit for 10 minutes until foamy.
Make the Dough: In a large bowl, whisk sugar, egg, vanilla, and salt. Stir in the yeast mixture, then gradually add flour. Add melted butter and knead until smooth. Cover the dough and refrigerate for 1 hour until doubled in size.
Shape and Cut: Roll dough to ¼-inch thickness on a floured surface. Use ghost cookie cutters to cut shapes.
Fry the Beignets: Heat oil to 350°F. Fry beignets in batches, 1-2 minutes per side, until golden. Transfer to paper towels to drain.
Add Toppings: Drizzle warm beignets with honey, dust generously with powdered sugar, and enjoy your spooky treats!