Add all ingredients, except the cooking oil and powdered sugar, to a 2-pound 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 into thirds. 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 48.