In a medium bowl, whisk together the eggs, milk, water, and vanilla until well blended. In another bowl, whisk together the flour, sugar, baking powder, and salt. Add the dry ingredients to the wet ingredients and whisk to combine.

Heat the oil in a heavy pot over medium high heat to 375 degrees. Place your finger over the spout of a funnel, then pour 1/2 cup of the batter into the funnel. Hold the funnel over the hot oil and remove your finger, then move the funnel in a circle to allow the batter to fall in a swirling motion into the oil.

Fry the funnel cake for 2-3 minutes per side, until golden brown. Remove from the hot oil with tongs and drain on paper towels. Sprinkle with powdered sugar and top with desired toppings.