In a bowl, combine the flour, baking powder and salt. In another bowl, beat egg and milk. Add the apple, butter, sugar, orange juice, peel and vanilla; mix well. Stir into dry ingredients just until moistened. In an electric skillet or deep-fat fryer, heat 1/4 in. of oil to 375 degrees F. Drop batter by rounded tablespoons into oil. Fry until golden brown on both sides. Drain on paper towels. Dust with confectioners' sugar. Serve warm.