Add in cream, milk, vanilla extract, butter, and oil. Whisk together.
In another bowl, whisk the flour, salt, baking powder, and sugar together.
Add the dry ingredients to the wet ingredients and stir together until combined.
In a dutch oven or 12 inch frying pan, add oil to be at least 3 inches deep. Heat to 375 degrees.
Using a spoon or cookie scoop, add a tablespoon or two of batter into the heated oil. The batter will puff up immediately and begin to brown on the bottom. As soon as the bottom of the batter ball is golden brown, flip it over and brown on the other side.
Remove from the oil using a slotted spoon and place cooked funnel cake bites on paper towels to absorb excess oil.
Dust cooled funnel cake bites with powdered sugar and serve immediately with the dipping sauce.
For the dipping sauce, add the ingredients in a microwave safe bowl. Microwave for 30 second increments, giving a stir after each one until the sauce is combined. Serve with the funnel cake bites.