Combine the yeast, water, and Sugar in the work bowl of a stand mixer fitted with a dough hook (You could also make this the old fashioned way, by hand). Allow mixture to sit until frothy, about 5 minutes; add the salt, egg, and evaporated milk. Mix on low speed, then add the cornbread mix and half of the flour until it starts to come together; add the shortening. When the shortening is incorporated start adding the remaining flour, a little at a time until most of it is incorporated.
Sprinkle remaining flour onto a surface and turn the dough out, kneading until the dough is no longer sticky. Place the dough into a large oiled bowl, loosely cover and allow to rise in a warm place until doubled in bulk or about one hour.
While the dough rises, make the honey butter by whipping together the softened butter, honey, cinnamon and cayenne pepper until blended. Set aside until ready to serve.
After the dough has doubled in bulk, punch it down and turn it onto a floured surface and roll out into a rectangle that is about 1/2" thick. With a very sharp knife cut or pizza cutter, cut dough into 2" diamonds shapes. Place the beignets on a floured baking sheet to let rise about 40 minutes in a warm place.
Meanwhile, heat 2-3 inches of vegetable oil in a large heavy bottomed saucepan or Dutch Oven (can use a deep fryer) to 350-360 degrees. Place 4-5 beignets into the hot oil at a time, being careful not to smash or deflate them. When they are golden brown, flip them over and cook second side. Remove to paper towel lined plates to drain. Serve hot topped with powdered sugar. Makes about 2 dozen.