Fill a Dutch oven or deep heavy bottomed pot fitted with a fry thermometer with 3-inches of peanut or canola oil. Heat on medium-high heat until it reaches 355°F-365°F.
In a large bowl use a whisk to sift together the flour, baking powder, cinnamon salt and nutmeg.
Add the bananas, milk, vanilla extract, banana extract and eggs. Stir together by hand using a large wooden spoon until it becomes a thick batter. Add more milk one tablespoon at a time, if needed. (There should be no visible flour.)
Use a 1 1/2 tablespoon springform ice cream scoop to drop batter into the hot oil. Cook, until lightly golden brown on the bottom and bubbles form on top, flipping as needed for even browning. Cook until the fritters are golden-brown, around 2 to 3 minutes total. (Be careful with splashing to avoid being burned!
Remove the fritters from the oil using a slotted spoon or stainless steel spider to a paper towel-lined sheet pan to drain excess grease.
Continue cooking fritters in batches keeping the oil between 355°F-365°F.
Sprinkle tops of the fritters generously with powdered sugar and serve warm with a drizzle of warm caramel.
Keep Warm: When frying in batches, keep the first batch of fritters warm on a sheet pan in a 200°F oven. Dust with powdered sugar just before serving.
Notes
Sauce: You can drizzle these fritters with warm chocolate sauce, maple syrup, or honey in place of caramel.
Cornstarch: Cornstarch adds a lightness to the batter and gives the banana fritters a crispy exterior. You can replace it with all purpose flour.
Milk: You can use half and half or buttermilk in place of whole milk.
Coconut: You can add 1/3 cup shredded coconut to the batter. It's best to use flaked coconut that has shorter shreds.
Flavorings: You could also use rum extract or coconut extract to change the flavor profile.