Heat oil to 375 degrees in a large skillet.
While the oil is heating, beat the egg and milk together in one bowl and combine flour, baking powder, salt, cinnamon and powdered sugar in another bowl.
Mix the wet and dry ingredients together until the batter is smooth.
When the oil has reached 375 degrees, pour the batter into a funnel, holding your finger over the small opening.
Hold the funnel with the batter over the oil and make a circle with your hand repeatedly to form the cake.
Fry until the bottom has turned golden brown and turn over and fry the other side.
When both sides are golden brown, remove from oil and drain on paper towels.
Use a small strainer to shake powdered sugar over the funnel cake.