In a medium sized pot, heat the milk, water, butter, and sugar over medium heat until the sugar and butter are completely melted.
After all the ingredients are melted and combined, remove from the heat and add the vanilla extract and mix well.
Add in the Flour and salt and mix vigorously until a thick mixture forms.
Allow the mixture to cool for just a few minutes, then add in the egg and whisk vigorously until the egg is completely combined and the mixture is smooth. You want to make sure the mixture isn’t so hot that it cooks the egg.
Next, pour enough oil in a large pot to fill it about 1/3 full, and heat over medium heat. Test the oil by placing a small piece of the batter in and when it turns golden brown the oil is ready. Once the oil is ready, reduce the heat to med-low
Add the churro batter into a large piping bag with a large star tip.
Apply steady pressure to the piping bag as you pipe out the churros directly into the oil. You can make them as long or as short as you wish.
After about 1 minute use a slotted spoon to turn the churros over. It will take about 2-3 minutes for the churros to turn a nice golden brown.
Once the churros are cooked through, remove from the oil and place on a paper towel. Continue with all the batter.
Add ½ cup granulated sugar and 1 Tablespoon cinnamon into a bowl big enough to lay the churros in. Coat them evenly on all sides.
Serve with warm caramel or chocolate sauce and enjoy!