Prepare the Cinnamon Sugar:

1. In a shallow dish or plate, mix together the ½ cup sugar and cinnamon until well combined. Set aside.

Make the Churro Dough:

2. In a medium saucepan, combine the water, 2½ tablespoons sugar, salt, and butter. Heat over medium-high heat, stirring occasionally, until the butter melts and the mixture comes to a rolling boil.
3. Remove from heat immediately and add all the flour at once. Using a wooden spoon or sturdy spatula, stir vigorously until the mixture forms a ball and pulls away from the sides of the pan. This should take about 30-60 seconds of stirring. The mixture will look shaggy at first, then come together into a smooth dough.
4. Let the dough cool for about 5 minutes. This prevents the egg from scrambling when added.
5. Add the egg and vanilla extract to the slightly cooled dough. Stir vigorously until completely incorporated and the dough is smooth and glossy. The mixture will look separated at first but will come together with continued mixing – keep going for 1-2 minutes until smooth.
6. Transfer the dough to a piping bag fitted with a large star tip (about ½-inch opening). If you don’t have a piping bag, you can use a sturdy plastic freezer bag and cut one corner to create an opening, though the star tip creates the traditional ridged texture. Twist the top of the bag to push the dough toward the tip.

Heat the Oil:

7. Pour about 2-3 inches of oil into a large, deep pot or Dutch oven. Heat over medium-high heat until the oil reaches 350-375°F (175-190°C). Use a candy thermometer to monitor the temperature – this is crucial for perfect churros! If you don’t have a thermometer, test by dropping a small piece of dough into the oil – it should sizzle immediately and turn golden in about 2 minutes.

Fry the Churros:

8. Once the oil is ready, carefully pipe 4-5 inch strips of dough directly into the hot oil, using kitchen scissors or a knife to cut the dough from the piping tip. Don’t overcrowd the pan – fry only 3-4 churros at a time to maintain oil temperature.
9. Fry for about 2 minutes per side, turning once with tongs or a slotted spoon, until the churros are golden brown all over and crispy. They should be a deep golden color, not pale or too dark.
10. Use a slotted spoon or spider strainer to remove the churros from the oil, letting excess oil drain back into the pot. Transfer to the paper towel-lined baking sheet to drain for just 10-15 seconds.

Coat and Serve:

11. While still hot (this is important – the sugar won’t stick well once they cool), roll the churros in the cinnamon sugar mixture, turning to coat all sides generously. The heat will help the sugar adhere.
12. Serve immediately while hot and crispy. If making chocolate sauce, prepare it while churros are frying.

Make the Chocolate Sauce (Optional):

13. Place chopped chocolate in a heat-proof bowl. Heat the cream in a small saucepan until it just begins to simmer (don’t boil). Pour the hot cream over the chocolate and let sit for 1 minute, then stir until smooth and glossy. Stir in butter and a pinch of salt. Serve warm for dipping.