Prepare the Dough:
In a medium saucepan, combine water, butter, salt, and sugar. Bring to a boil over medium heat until butter melts completely.

Add Flour:
Remove from heat and quickly stir in the flour until a smooth dough forms and pulls away from the sides of the pan.

Cool Slightly and Add Egg:
Let the dough cool for 5 minutes. Beat in the egg and vanilla essence until fully incorporated and smooth.

Preheat Air Fryer:
Preheat your air fryer to 375°F (190°C).

Form Churro Bites:
Using a piping bag fitted with a star nozzle, pipe small bite-sized rounds or strips of dough onto a parchment-lined tray or plate.

Air Fry:
Carefully place the dough pieces in the air fryer basket without overcrowding. Cook for 8-10 minutes, turning halfway through, until golden and crispy.

Prepare Coating:
In a bowl, mix sugar and cinnamon powder.

Coat Churro Bites:
While still warm, toss the churro bites in the cinnamon-sugar mixture until evenly coated.

Serve:
Serve immediately with chocolate sauce or your favorite dip.