In a large bowl, mix water, sugar and yeast. Let sit for 10 minutes.
In another bowl, beat the eggs, evaporated milk and salt together.
Combine egg mixture with the yeast mixture.
Add 3 cups of flour and stir to combine.
Next, add the shortening and the rest of the flour. Stir to combine.
Once combined, place dough on a lightly floured work surface. Knead until smooth.
Place dough in a large, lightly greased bowl. Cover with plastic wrap and allow to rise in a warm, draft free place for 2 hours.
Pour a few inches of oil into a large, deep pot.
Heat oil to 350°.
On a lightly floured surface, roll dough out to roughly 1/4 inch thickness.
Cut dough into 3 inch squares.
Place 4-6 squares into the oil.
When the squares float, flip them continuously until golden brown.
Remove beignets and place on a paper towel lined plate to drain for a few seconds.
While the beignets are still hot, sprinkle with powdered sugar, using a mesh sieve.