Mix together flour, sugar, baking powder and salt. In another bowl whisk together egg, milk, butter and vanilla until blended. Then whisk in grated lemon and orange peel. Stir egg mixture into flour mixture to make smooth soft, pliable dough. Use 12 inch skillet to heat 2 inches of oil to 375. While oil is heating, pinch off a piece of dough and roll into a ball. Make the ball about the size of a cherry. It is up to you how big or small you want each ball to be. Drop into oil 3 or more batches at a time for 1 minute or until puffed and golden.
Remove balls with slotted spoon and drain on paper towels. In small saucepan bring honey to a boil, remove from heat and pour over fried balls that have been put in a large bowl to toss. Stir gently to coat. When cool to handle, arrange on platter in pyramid form. Decorate with both or one of the powdered sugar and multicolored nonparelis.