Proof the yeast. Scald the milk; stir in the sugar, shortening, and
  salt. Cook the mixture to the 105 to 115 degree range. Add milk
  mixture, egg, and 2 cups flour to the yeast mixture, mixing well.
  Gradually stir in enough remaining flour to make a soft dough.
  Turn  the dough out onto a floured surface, and knead until smooth and
  elastic (8 to 10 minutes). Place in a well-greased bowl, turning to
  grease the top. Cover and let rise about 1 hour, or until doubled.
  Punch dough down; turn out onto a lightly floured surface. Roll dough
  into a 12" x 10" rectangle; cut into 2" squares. Place on a floured
  surface; cover and let rise in a warm place 30 minutes or until
  doubled in bulk.

  Heat 3" to 4" of oil to 375 degrees; drop in 3 to 4  beignets at a
  time. Cook 1 minute on each side or until golden.  Drain on paper
  towels, and sprinkle with powdered sugar.