Mix the cornmeal with the flour, sugar, baking powder, and seasonings. In a separate bowl whisk the egg with the milk and water and pour over the dry ingredients. Add the parsley and red pepper and stir to combine. Let the batter rest for 20 minutes.
Preheat oil to 350°F. Work in batches, dropping batter by tablespoonfuls into the hot oil, and cooking for 3-4 minutes (turning halfway through) until hushpuppies are golden brown on all sides. Drain on paper towels. Place cooked hushpuppies on a pan in a single layer and keep in a warm oven before serving—no more than 30 minutes.