Fill a deep, medium skillet with enough oil to reach a depth of 2 inches; heat over medium-high heat until it registers 375 degrees on a deep-fry thermometer, about 8 minutes.
Meanwhile, sift the flour, sugar, baking powder and salt into a medium bowl. In a small bowl, beat the milk and egg, then beat into the dry ingredients until smooth. Transfer to a glass measuring cup.
Fill a baster with batter. Drizzle into the hot oil in a zigzag pattern, then refill the baster and drizzle more batter on top; repeat until one-quarter of the batter has been used. Fry the funnel cake, turning once, until golden, about 2 minutes. Using a slotted spatula, transfer to a paper-towel-lined baking sheet. Working in 3 batches, repeat with the remaining batter, allowing the oil to return to 375 degrees between batches.
Drizzle the honey over the funnel cakes, sprinkle with the sesame seeds and serve immediately.