1/2 c milk
1/2 c water
3 T butter, diced
2 t sugar
1/4 t + 1/8 t salt
1/2 t vanilla
1 c flour
vegetable oil, for frying
Heat 1 1/2 inches of oil to medium heat (360 degrees)
In a medium saucepan combine milk, water, butter, 2 t sugar, and salt and bring mixture to a boil. Remove from heat and immediately stir in vanilla and flour. Stir mixture with a spatula to smooth any lumps and stir until mixture comes together and is smooth. Transfer to a piping bag fitted with a large open star tip and pipe about 1 to 1 1/2 inches of dough out over oil and using clean scissors, cut dough at top to allow dough to drop into oil. Work in small batches being careful not to overcrowd. Allow churros to fry until golden brown, remove with a wire skimmer and drain on a plate lined with several layers of paper towels.
In a small mixing bowl, mix together 1/2 c sugar and 2 t ground cinnamon. Toss warm, drained churros into sugar mixture to evenly coat. Serve warm. Drizzle with chocolate sauce if desired.