In a separate bowl, combine warm water, softened butter, and vanilla extract, stirring until the butter melts and the mixture is smooth.

Pour the wet mixture into the dry ingredients, stirring gently with a spatula until a soft dough forms.

Turn the dough onto a lightly floured surface and knead with your hands just until it comes together into a cohesive ball.

Use your fingers to pinch off small pieces of dough, about 1 inch (2.5 cm) each, rolling them into smooth little balls.

Preheat your air fryer to 375°F (190°C) for about 3 minutes to ensure even cooking.

In a shallow bowl, mix the coating sugar and cinnamon together until well blended, setting it aside.

If needed, lightly spray the air fryer basket with oil to prevent sticking, then place the churro dough balls in a single layer, leaving space around each one.

Air fry the dough bites for 6–8 minutes, shaking the basket halfway through so all sides turn golden and crisp.

While the bites are hot, immediately roll them in the cinnamon sugar mixture, letting the sweet coating stick to the warm, crisp surface.

Once all bites are coated, arrange them on a serving plate so the sugar glistens and the scent of cinnamon fills the air.

Serve these bites right away, or pair them with your favorite dipping sauces for extra indulgence.