Combine all the custard ingredients in a medium saucepan and mix well. Be sure to blend the cornstarch completely with the milk. Heat the custard mixture over medium heat and use a wooden spoon to stir constantly while heating. As the custard begins to thicken stir the custard vigorously to prevent lumps from forming. Turn the heat off once all the mixture becomes a very thick custard. It will have the consistency of mashed potatos. While the custard is still hot spread it in a loaf pan as evenly as possible. Cool the custard and refrigerate for at least four hours.

Combine the flour and baking powder together in a medium mixing bowl and mix well. Add the egg and water to the flour and mix well. Remove the cooled custard from the loaf pan. It should slip off the loaf pan easily. Cut the custard into large sticks of about two inches long and 3/4 inch thick.

Heat the vegetable oil in a wok over medium heat until it is just beginning to shimmer or about 350° F. Put all the custard sticks in the batter and make sure they are all coated evenly. Individually drop the battered custard sticks into the oil and fry them for about 8 minutes or until golden brown. Remove the fried custard from the wok and drain excess oil on two layers of paper towel.

Arrange the fried custard sticks on a plate and dust with confectionary sugar. Serve immediately while still hot accompanied by the condensed milk for dipping.