Add all ingredients, except the cooking oil and powdered sugar, to the bread machine according to manufacturers directions. Select the dough cycle. When cycle is complete, remove dough from machine. Punch down. Cover; let rest for 10 minutes.
Divide the dough in half. On a lightly floured surface, roll each portion of dough into a 9-inch square. Cut each into sixteen 2-1/4-inch squares.
Fry the dough squares, 2 or 3 at a time, in deep hot oil (375 degrees F) for 1 to 2 minutes or until golden brown, turning once. Using a slotted spoon, remove from oil and drain on paper towels. Sprinkle with powdered sugar. Transfer to wire racks to cool. Makes 32.