In a saucepan, combine the water, butter, salt, and sugar. Heat the mixture over high heat until it comes to a boil. Once boiling, reduce the heat and slowly add the flour, stirring constantly until the dough forms a smooth, cohesive ball. Remove the pan from the heat.
Transfer the dough to a large mixing bowl and allow it to cool for about 4 to 5 minutes. When slightly cooled, add the egg and vanilla essence. Using an electric hand mixer, beat the mixture thoroughly until it becomes smooth and well combined.
Spoon the churro dough into a piping bag. Preheat your air fryer to 375°F (190°C) and lightly spray the basket with a neutral nonstick cooking spray, like coconut oil spray. Carefully pipe small, bite-sized churros into the basket, making sure not to overcrowd. Alternatively, you can drop spoonfuls of dough into the basket for a different shape.
Brush a light layer of butter over the churros before cooking them in the air fryer for 10 to 12 minutes, or until they turn golden brown. Depending on your air fryer’s capacity, you might need to cook the churros in several batches to ensure even cooking.
In a shallow bowl, combine the sugar and cinnamon powder. Once cooked, immediately toss the churros in the cinnamon sugar mixture until evenly coated. To help the coating stick better, you can brush the churros with melted butter or lightly spray them with water or nonstick spray before rolling.
Serve your warm churro bites with your favorite dips such as chocolate syrup, honey, or Nutella. These sweet, crispy treats make an ideal indulgent snack to enjoy anytime!