Sift all dry ingredients together. Mix egg and milk together; add to dry ingredients. Beat until smooth. (More milk will be needed, but add it gradually until the consistency of pancake batter.) Fill pan with 1 inch of cooking oil and heat as for cooking doughnuts. Hold finger over bottom of funnel. Pour in about 1/4 cup batter. Remove finger and let batter drop in spiral motion into pan of hot oil. Fry until golden brown, turning once with tongs. Remove from pan and drain on paper towel. Sprinkle with powdered sugar and serve hot. Makes 6 funnel cakes. (At the fair, these are also served with a cinnamon/sugar mix sprinkled on them. I'm still trying to decide which is better. I think I need to try both of them again <g>.)