Add sugar and yeast to warm water and set aside for 5 minutes. The mixture will become foamy.
Beat together the egg and milk. Add 1/2 the flour and the salt and mix together.
Add the shortening to the flour mixture and blend.
Add in half the yeast mixture and half the remaining flour. Mix. Add in the remaining flour and yeast. Continue to mix. The dough should begin to pull away from the sides of the bowl. Add more flour if dough is sticky.
Cover the dough with waxed paper or a towel and let the dough rise for 1-2 hours in a warm area (You can eliminate this rise time if you are in a hurry).
Place the dough on a floured board or clean countertop that has been dusted with flour. Roll the dough until it is about 1/2 inch thick.
Cut Mickey shaped beignets
Place on a clean cookie sheet and cover with towel. Allow the beignets to raise for about 1 hour in a warm location.
Pour peanut oil into an electric skillet or a deep frying pan. Use 2-3 inches of oil. Heat oil to approximately 375 degrees.
Test the temperature of the oil with a small scrap of dough. If the dough begins to fry, the oil is ready. If it sinks and does not "fry", the oil is not hot enough. If the dough turns dark too fast, the oil is too hot.
Make sure to spread the beignets out in the pan. Do not overcrowd the oil. Fry on each side 1-2 minutes.
Remove with slotted spoon and allow to cool for 1-2 minutes. Sprinkle powdered sugar over the beignets and serve warm.