Beat together the milk, egg, vanilla, and butter in a mixing bowl.
Whisk in the baking soda and sugar.
Slowly beat in the flour a little at a time until smooth and creamy.
Add the mixture to a piping bag or ziploc bag with a hole cut into one corner.
Heat the oil on the stove over medium-high heat until it reaches about 350-375 degrees.
Drizzle small circles of the batter into the hot oil, and turn to cook both sides until golden brown. Remove, and place on a paper towel-lined rack to drain.
Repeat this process until all of the batter has been used.
Garnish the funnel cake bites with powdered sugar and serve.