In a small saucepan bring margarine or butter, 1-1/2 teaspoons sugar, and 1/2 cup water to boiling. Add flour all at once, stirring vigorously with a wooden spoon. Cook and stir till mixture forms a ball that doesn't separate. Remove from heat and cool 10 minutes. Add egg; beat till smooth.
Spoon dough into a pastry bag fitted with a large star tip. Pipe dough into 3 x 3/4-inch strips onto a baking sheet lined with waxed paper. Freeze 10 to 20 minutes or till paper can be peeled off. (Do not freeze firm.) Fry, a few at a time, in deep hot fat (375°) for 4 to 5 minutes or till golden, turning occasionally. Drain on paper towels. Roll in sugar. Serve warm.