In a saucepan, bring water, butter, salt, and 2 tablespoons sugar to a boil.
Remove from heat and stir in the flour until mixture forms a dough.
Allow the dough to cool slightly.
Beat the egg and vanilla essence together, then mix into the dough until smooth.
Preheat your air fryer to 375°F (190°C).
Using a piping bag or spoon, form small bite-sized portions of dough.
Place dough bites into the air fryer basket, making sure they are spaced evenly.
Cook for 15-20 minutes or until golden and cooked through, shaking the basket halfway.
Mix white sugar and cinnamon powder in a bowl.
Roll the warm churro bites into the cinnamon sugar mixture to coat evenly.
Serve immediately and enjoy warm churro bites.