In a small bowl, dissolve the sugar in warm water and sprinkle the yeast over it. Let it sit for about 5-10 minutes until it becomes frothy.
In a large mixing bowl, combine the flour, baking powder, and salt.
Make a well in the center and add the yeast mixture, milk, egg, and melted butter.
Mix until the batter is smooth and well combined. Cover the bowl with a clean kitchen towel or plastic wrap and let it rise in a warm place for about 1 hour, or until it doubles in size.
Heat oil in a deep pan or skillet over medium heat.
Using a spoon or small scoop, drop spoonfuls of the batter into the hot oil. Fry in batches, being careful not to overcrowd the pan.
Cook the Luqaimat for about 2-3 minutes on each side, or until golden brown and cooked through.
Remove the Luqaimat with a slotted spoon and drain on paper towels.
Drizzle with honey or syrup before serving.
Enjoy your meal!