Warm 1/2 cup of water and 1/2 cup of whole milk until warm, around 110°F. Add 1/4 cup sugar and 2 1/4 teaspoons yeast to a bowl, whisk, and let sit for 15 minutes until frothy.

In a large bowl, whisk together 4 cups of flour and 1 teaspoon of salt to distribute evenly.

Add the frothy yeast mixture, 1 beaten egg, and 1/4 cup melted butter to the dry ingredients. Mix until a thick, sticky dough forms.

Flour a clean surface, transfer the dough, and knead for 3-4 minutes until smooth.

Grease a large bowl, place the dough inside, cover, and let rise in a warm area for 1.5 to 2 hours until doubled.

Heat 2 inches of oil in a Dutch oven to 370°F. Roll out the dough to 1/4-inch thickness and cut into squares.

Fry dough squares in batches for 1-2 minutes per side until golden brown, using a slotted spoon to drain on paper towels.

Dust warm beignets with powdered sugar and serve immediately with coffee or chocolate.