Make the earl grey powdered sugar. Infuse 2 cups granulated sugar with 1 tablespoon earl grey loose tea leaves and let it sit overnight. Blend together the sugar with 2 tablespoon cornstarch until finely ground, about 5 minutes. Set aside.
Combine water with 1 teaspoon sugar and yeast and let the mixture sit for 10 minutes or until the yeast has bloomed.
Whisk together eggs with evaporated milk and melted butter. Measure 2 cups of bread flour in a large bowl and add the egg mixture, yeast mixture, ½ teaspoon salt, 2 tablespoon dry milk powder, and ½ cup cocoa powder. Mix until well combined, slowly adding the remaining 1 ½ cups flour. Knead dough until smooth, about 5-7 minutes. Cover with plastic wrap and let rise in a warm place for 2 hours or until doubled in size.
Preheat oil in a deep fryer to 350 degrees F.
Punch down the dough. Dust a clean work counter with flour and roll out the dough into 2x2 inch squares, about ¼ inch thick. Carefully deep fry the dough in batches, flipping constantly until they become golden brown. Remove beignets with a slotted spoon onto a paper towel-lined plate. Repeat with remaining dough. Dust generous amount of earl grey sugar onto the beignets and serve while warm.