The best kind of sugar to use is white granulated sugar. This makes for a better-tasting dish, in my opinion. You can also use brown or raw sugar if that's what you have; this will still taste good but not as sweet. However, I do not recommend using powdered sugar or anything else of the sort. Monkey Bread is also sometimes served with maple syrup on top instead of granulated sugar. If this sounds like something you'd enjoy, you can try adding some up to your liking. It tastes great! They say that there are two kinds of people in this world: people who like sugar on top of their monkey bread, and people who don't. I'm part of the former group, but if you are looking for more variety in your life, try adding some maple syrup to your Monkey Bread! If it is something you enjoy, there are plenty of ways to incorporate this tasty breakfast pastry into everyday life. Source: http://www.tablespoon.com/recipes/monkey-bread-recipe