In a large bowl, mix flour, baking powder, and salt together. Cut in the lard or butter using a pastry blender or two knives until the mixture has a coarse meal-like consistency. Now, add milk to the mixture and stir well. Set the mixture aside once you are done stirring.
In a 2-quart saucepan, combine vinegar, water, sugar, salt, and vanilla. Bring to a boil. Drop dough by teaspoonfuls into the boiling liquid and simmer for 10 minutes. Cover and simmer for 10 more minutes.
Spoon dumplings into dessert dishes; ladle sauce over dumplings.
serve warm, with whipped cream or ice cream, if desired.