In a medium saucepan, combine 1 cup of water, 1/3 cup plus 1 tablespoon of unsalted butter, 1 teaspoon of salt, and 2 tablespoons of sugar. Bring this mixture to a boil over medium heat, stirring occasionally until the butter melts completely.

Once boiling, reduce the heat and gradually stir in 1 cup of plain flour until a cohesive dough forms.

Remove the saucepan from heat and allow the dough to cool for about 4-5 minutes.

Once slightly cool, mix in 1 large egg and 1 teaspoon of vanilla essence. Stir until the dough is smooth and shiny.

Preheat your air fryer to 375°F (190°C) and lightly spray the fryer basket with nonstick cooking spray.

Transfer the smooth dough into a piping bag fitted with a star tip and carefully pipe bite-sized churros into the basket.

Brush the piped churros lightly with melted butter and cook for 10-12 minutes until golden brown.

Remove them from the air fryer and quickly transfer them to a bowl filled with 1 cup of white sugar mixed with 1 tablespoon of cinnamon powder, tossing to coat.

Serve warm, paired with dipping sauces like chocolate syrup or Nutella.