In a medium sized bowl, whisk together 2 3/4 cups of flour with sugar, baking powder, baking soda, salt, and nutmeg.

In a separate large bowl, whisk buttermilk, water, egg and vanilla extract until throughly combined. Use a wooden spoon to stir the dry ingredients into the wet ingredients.

Heat a couple of inches of oil in a pot or skillet over medium high heat until it registers 325º F when taken with a thermometer. If it gets too hot, reduce the temperature. If you don't have a thermometer, heat the oil for a few minutes then sprinkle in a little flour. If it bubbles up quickly, the oil is ready. You'll have to keep a closer eye on it and turn it up or down as needed.

While your oil is heating up, dust a flat surface (such as your counter top or a silicone mat) with a couple more tablespoons of flour. Place the dough onto the prepared surface and sprinkle about 2 more tablespoons of flour over top. Gently pat the dough into a large rectangle about 1/4 inch thick. It's ok if it's a little uneven. If the dough is still too sticky to touch, sprinkle a little more flour on it.

Immediately cut the dough into 2 - 3 inch squares using a pizza cutter. The dough gets sticky as it's sitting, so use a spoon or spatula to pick up the dough pieces if they are stuck. Carefully place a few at a time into the hot oil. Fry them for 3-4 minutes, turning them over halfway through. Some of the pieces can get a little out of shape, but that's ok! They'll still puff and taste amazing!

Use a slotted spoon to remove the beignets from the oil and place on a cooling rack or paper towel lined plate. Let them cool for a few minutes, then dust them with powdered sugar using a strainer or sifter. Bon appétit!