In a saucepan, combine water, butter, and sugar. Bring to a boil.
Remove from heat and stir in flour, vanilla, salt, and baking powder until a dough forms.
Allow the dough to cool slightly, then pipe small bites onto a baking sheet lined with parchment paper.
Preheat the air fryer to 375°F (190°C).
Spray the air fryer basket with cooking spray. Place churro bites in the basket in a single layer.
Air fry for 10-12 minutes until golden brown, shaking the basket halfway through.
Toss warm churro bites in cinnamon sugar mixture.
Serve warm and enjoy!