In a bowl, mix the condensed milk, powdered milk, and vanilla extract until well combined. Fold in the cashew nuts. Scoop about 1 tablespoon of the mixture onto the work surface and shape into a small, 3-inch-long cylinder. Roll in the sugar until completely coated. Wrap in parchment paper and then in Japanese wrapping paper as pictured above. Repeat steps until all of the mixture has been used up.