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New Mexican Sopaipillas

2 cups all-purpose flour
2 teaspoons baking powder
1/2 teaspoon salt
2 tablespoons vegetable shortening, plus more for deep frying
1/2 cup water
1/4 cup milk
1/4 cup honey, preferably sage honey
2 teaspoons ground mild chili powder
Butter for serving

1. In a medium bowl, combine the flour, baking powder, and salt. Using a pastry blender or 2 knives, cut the 2 tablespoons shortening into the flour until the mixture resembles coarse meal. Mix in the water and milk to make a soft dough. Gently knead the dough a few times in the bowl just until smooth. Cover the dough with plastic wrap and let stand for 15 minutes.
2. In a small bowl, mix the honey and ground chili. Set aside.
3. Divide the dough in half. On an unfloured work surface, roll out each portion into an 8-inch round. Cut each round into 4 wedges.
4. Preheat oven to 200*F (95*C). Place a wire cake rack in a baking sheet.
5. In a Dutch oven, melt shortening to a depth of 2 to 3-inches and heat it to 375*F (190*C). In batches, without crowding, deep-fry the sopaipillas, constantly spooning the hot oil over the tops to help them puff, until golden brown, about 3 minutes. Transfer to the cake rack and keep warm in the oven while frying the rest of the sopaipillas. Serve warm with chili-honey and butter.

Makes 8 servings.