Measure pancake mix and water into a plastic bag and seal.
Gently shake and knead the bag until well blended. In a skillet, preheat 1 inch of vegetable oil to 375°F.
Cut one corner of the bag, creating a 1/4-inch hole.
Use your index finger to stop the flow of the batter.
Holding bag several inches above hot oil, swirl batter starting from the center and working your way out, making overlapping circular motions to create a lacy 5-inch funnel cake.
Fry 1 to 2 minutes until golden brown, flipping once.
Drain excess oil on paper towels.
Sprinkle it with powdered sugar.
