In a medium saucepan set over medium heat, combine the water, unsalted butter, 1 tablespoon of granulated sugar, and 1/2 teaspoon of salt. Heat the mixture, stirring frequently, until it comes to a rolling boil and the butter has completely melted.
Once boiling, remove the saucepan from heat. Carefully stir in the all-purpose flour and baking powder using a wooden spoon or spatula until a thick dough forms. Allow the dough to cool for approximately 5 minutes.
Add the large eggs to the cooled dough one at a time. Mix each egg in thoroughly until the dough is smooth and cohesive. Finally, stir in the teaspoon of vanilla extract to enhance the flavor.
While preparing the dough, preheat your Air Fryer to 375°F (190°C) to ensure even cooking.
Transfer your churro dough into a piping bag fitted with a star-shaped nozzle. If you don’t have a piping bag, you can use a resealable ziptop bag with one corner snipped off as an alternative.
Carefully pipe the dough into the Air Fryer basket, creating 1-inch long pieces. Make sure to space them out, leaving some room between each one to allow for expansion. You may need to work in batches, depending on the size of your Air Fryer.
Air fry the churro bites for about 8-10 minutes, or until they are beautifully golden brown and crispy on the outside.
While the churro bites are cooking, mix 1/4 cup of granulated sugar with 1 teaspoon of ground cinnamon in a small bowl. This will be used for coating.
Once the churro bites are ready, carefully remove them from the Air Fryer. Immediately toss them in the cinnamon sugar mixture, ensuring they are well-coated and deliciously sweet.
Serve the churro bites warm for the best taste experience, and enjoy the delightful crunch and cinnamon-sugar goodness!