Heat up your oil over medium heat, that as soon as it starts to get shimmery, turn the heat to low. If you have a thermometer, heat oil to somewhere between 320 and 356 degrees F. (160 - 180 degrees C)
While oil is heating, sift flour, baking powder, sugar, and salt. add the egg and milk, and mix everything up with enough water to form a thick batter/wet dough.
Fry tablespoonfuls in the oil for 3-5 min. until they are a dark golden brown. if your oil is too high, the paikeke will be uncooked on the inside. If your oil is too low you'll have greasy panikeke. Break one open every few to make sure that they are done.
Eat hot or col, though these usually don't get a chance to cool doen before they're snatched up.
Note- You can substitute self-rising flour for the flour and baking powder. When you double or triple, or for sure quadruple the recipe, make sure when you add the water you don't add too much and get the wrong consistency.
Suggestion, add a little vanilla to the mix to give it a little extra kick. Also you could try putting the dough into a pipping bag and just pipe them into the oil.
If you mix the dough just right and the oil is at the right temp., then the panikeke will round themselfs out, no matter what shape you drop them into the oil. And if your panikeke has "horns", oh buddy, snatch those up quick because they are crunchy and delish!!!