Saute 3 pieces of bacon, cool and chop into small pieces
Prepare a deep fryer with 3-inches of canola oil and heat to 375°F, or heat oil in a deep pot.
Line a baking sheet or large platter with paper towels.
In a large bowl combine flour, baking powder, sugar, and salt.
In a small bowl whisk together milk, water, and the egg. Add to the flour mixture and mix well. Fold in the chopped bacon and combine.
Drop about 1 heaping tablespoon of mixture carefully into the deep fryer. Add about 4-5 more but do not crowd the fryer or pot. Turn after about 3 minutes and finish cooking on the other side. Cook until lightly golden.
Remove beignets with tongs or a large slotted spoon and place on prepared paper towels to cool. Repeat with all batter.
Place powdered sugar in a medium bowl and add beignets a few at a time and roll to coat.
Serve with warm maple syrup.