In a mixing bowl, sprinkle yeast over warm water, stir in 2 teaspoons of the sugar until dissolved. Set aside for about 10 minutes or until small bubbles form. Add the remaining sugar, starter, salt, egg, oil and evaporated milk. Mix well. Stir in 1 1/2 cups flour, then beat until smooth. Add remaining flour, a little at a time, until dough pulls away from sides of the bowl and becomes to stiff to stir with a spoon.
Turn dough out onto a floured board. Form into a ball and transfer to a clean, lightly greased bowl turning to coat all sides of the ball. Cover with plastic wrap and let rise in a warm place for 1 1/2 to 2 hours or refrigerate over night and proceed the next day.
Roll dough to a thickness between 1/8 to 1/4 inch. Then cut into rectangles about 2 by 3 inches.
Heat the oil in a large deep cast iron pan to a depth of 3 to 4 inches to 360 degrees. Fry beignets, 3 to 4 at a time until they puff and become golden brown on both sides, about 2 to 3 minutes turning once or twice.