In a large mixing bowl, whisk together the all-purpose flour, granulated sugar, baking powder, and salt. Make sure everything is well combined. This ensures an even rise and texture.
In a separate, smaller bowl, combine the lightly beaten egg, milk, and vanilla extract. Whisk them together until blended.
Pour the wet ingredients into the bowl with the dry ingredients. Mix with a spoon or spatula until a soft, slightly sticky dough forms. Don’t overmix; just combine until there are no dry spots of flour.
Pour about 2-3 inches of vegetable oil into a heavy-bottomed pot or Dutch oven. Heat the oil over medium heat to a temperature of 350°F (175°C). It’s important to maintain this temperature for even cooking. You can test if the oil is ready by dropping a tiny bit of dough; it should sizzle and float to the surface.
Once the oil is at the correct temperature, carefully drop spoonfuls of the dough into the hot oil. Don’t overcrowd the pot; fry in batches. The dough balls will initially sink, then float to the surface.
Fry the Sata Andagi for about 5-7 minutes, turning them occasionally with a slotted spoon, until they are a deep golden brown all over. They should puff up slightly as they cook.
Using a slotted spoon, remove the Sata Andagi from the hot oil and place them on a wire rack lined with paper towels to drain any excess oil. Let them cool slightly before serving.