Combine 1-1/2 cups of the flour and the yeast. In a saucepan heat and stir milk, sugar, water, shortening, and salt until warm (120 degrees F to 130 degrees F) and shortening almost melts. Add to the flour mixture along with the eggs. Beat with an electric mixer on low speed for 30 seconds, scraping bowl constantly. Beat on high speed for 3 minutes. Using a wooden spoon, stir in as much of the remaining flour as you can.
Turn out onto a lightly floured surface. Knead in enough of the remaining flour to make a moderately stiff dough that is smooth and elastic (6 to 8 minutes total). Shape into a ball. Place in a lightly greased bowl, turn once to grease surface. Cover and refrigerate 8 hours or overnight. (Dough can be refrigerated up to 3 days and fried as needed, but is best the first day.)
Remove dough from refrigerator; let stand at room temperature for 30 minutes. Punch dough down. Turn out onto a lightly floured surface. Cover and let rest for 10 minutes. Roll dough to 1/8- to 1/4-inch thickness. Cut into 3x4-inch rectangles.
Heat cooking oil to 365 degrees F. Carefully fry 2 rectangles at a time about 1-1/2 to 2 minutes or until golden, turning once. Drain on paper towels. Sprinkle with powdered sugar while still warm; serve immediately. Makes about 20 rectangles.