To prepare the gnocco fritto, start mixing the water with the milk.
In a bowl, pour the flour, baking powder, sugar and salt. Mix the powders and then stir in the lard.
Add the milk and water mixture. Mix well until you have a soft dough. Shape it into a ball, place into a bowl and cover with a towel. Leave to rise for about 2 hours, or until doubled in size.
Next, dust a work surface with flour. Roll out the dough to about 3mm thick. Cut it into 5 –6 cm squares with a pasta wheel or a sharp knife.
In a deep pan, heat the oil to 180°C for about 1 minute. Fry the gnocchi in batches for a few minutes until puffed and deep golden in colour. Remove with a slotted spoon and transfer to a plate lined with paper towels. Serve freshly fried with cold cuts and cheese.