In a large mixing bowl, whisk together the beaten egg, melted butter, canola oil, vanilla extract, milk, and optional granulated sugar until well combined.

Gradually add in the sifted all-purpose flour, baking powder, and salt. Stir gently until the flour is incorporated. The batter should remain slightly lumpy.

Heat canola oil in a deep skillet over medium-high heat. To test if the oil is ready, drop a small amount of batter into the oil. If it begins to fry calmly without smoking or browning too quickly, the oil is at the right temperature.

Using a mini ice cream scoop or spoon, carefully drop portions of batter into the hot oil, working quickly to avoid overcrowding.

Fry the batter until golden brown on all sides, turning as needed.

Remove the funnel cake bites from the oil and place them on a plate lined with paper towels to drain excess oil.

Generously dust with powdered sugar and serve immediately. Enjoy with your favorite dipping sauces.