HEAT 1-inch of oil in large skillet with straight sides over medium-high heat to 330°F. Reduce heat to maintain oil temperature between 330-340°F.
COMBINE pancake mix, egg and milk in small bowl until blended. Place batter in 1-quart resealable plastic freezer bag. Cut about 3/8-inch corner off of bag. Squeeze batter in a spiral pattern, in oil, about 5 inches in diameter for each funnel cake.
COOK 30 seconds per side or until golden brown. Remove with slotted spoon. Drain on paper towels. Repeat with remaining batter to make 5 more funnel cakes. Place on serving plate. Drizzle with topping and sprinkle with powdered sugar.