Fill instant pot with oil until 2 inches deep. Set to sauté and using a candy thermometer, bring the temperature to 350. May take 20-30 minutes.
In a mixing bowl, whisk together the eggs, milk, vanilla, and water.
Whisk in sugar, salt, and baking powder
Mix in flour until batter forms
Once oil comes to temperature, pour batter into a gallon size zip lock bag and cut a small corner off. A piping bag can be used.
Squeeze batter into the oil piping in random directions and layered over itself. Leave room for the batter to expand. Cook for 5 minutes on one side, flip and cook for another 5 minutes
Remove and place on paper towel to cool and dry.
Dust with powdered sugar. Optional drizzle with favor sauce.
Notes
Consistent Batter Thickness: Maintain a consistent batter thickness when pouring it into the hot oil. Too thick can result in undercooked centers, while too thin may lead to overly crispy edges.