Step 1: In a medium saucepan, combine water, butter, 1 tablespoon granulated sugar, and 1/2 teaspoon salt. Bring the mixture to a rolling boil over medium heat.
Step 2: Once boiling, remove the saucepan from the heat. Immediately add the 1 cup all-purpose flour, 1 teaspoon baking powder, and 1/2 teaspoon cinnamon to the hot liquid. Stir vigorously with a wooden spoon until a smooth, thick dough forms and pulls away from the sides of the pan. Let the dough cool for a few minutes.
Step 3: Stir in the 1 teaspoon vanilla extract until it is fully incorporated into the cooled dough.
Step 4: Preheat your air fryer to 375°F (190°C).
Step 5: Transfer the dough to a piping bag fitted with a star tip (this creates the classic ridged churro shape). Pipe small, bite-sized pieces, approximately 1 inch long, onto a parchment-lined cutting board or plate.
Step 6: Place the piped churro bites in the freezer for about 10 minutes. This step is crucial as it helps them firm up, maintaining their shape and achieving a crispier texture in the air fryer.
Step 7: Lightly spray the air fryer basket with cooking spray to prevent sticking. Carefully arrange the chilled churro bites in a single layer in the basket, ensuring not to overcrowd them. Cook in batches if necessary.
Step 8: Air fry for 8-10 minutes, or until the churro bites are golden brown and deliciously crispy. Remember to flip them halfway through the cooking time to ensure even browning.
Step 9: While the churro bites are cooking, prepare your coating. In a small, shallow bowl, combine the 1/4 cup granulated sugar and 1 teaspoon cinnamon for the coating.
Step 10: As soon as the churro bites are done cooking, immediately transfer them to the cinnamon sugar mixture. Toss gently until each bite is fully coated with the sweet spice. Serve warm and enjoy!