Make the Dough
In a large bowl, mix flour, sugar, salt, and baking powder.
Add softened butter and rub it in with your fingers until the mixture looks sandy.
In another bowl, whisk warm milk, egg, and vanilla.
Pour wet ingredients into dry and mix until a sticky dough forms.
Knead the dough on a floured surface for 5–7 minutes until smooth. Cover and let rest for 30 minutes.
Roll Out the Dough
Divide dough into small balls about the size of a golf ball.
Roll each ball into thin circles, about 1/8 inch thick.
Fry the Bunuelos
Heat vegetable oil in a deep skillet to 350°F (175°C).
Carefully place dough circles in hot oil. Fry 1–2 minutes per side until golden and puffed.
Remove with a slotted spoon and drain on paper towels.
Add Sugar and Cinnamon
Sprinkle bunuelos with cinnamon sugar while still warm.
Optional: drizzle honey or syrup on top. Serve immediately.