Preheat the air fryer to 375 degrees.

Cut up the butter into tablespoons.

Add the butter to a medium sized saucepan with the water, milk, and sugar.

Cook the mixture over medium heat and stir frequently until it reaches a boil.

Remove the saucepan from the heat and stir in the flour, making sure to fully incorporate.

Put the saucepan back over the heat and stir for about 2 minutes until the mixture starts to come together into a smooth ball.

Remove the saucepan from heat and transfer the dough into a large mixing bowl.

Use an electric mixture to beat the dough for a few minutes, releasing some of the heat.

In a separate bowl, whisk together the eggs and vanilla.

Slowly add the egg mixture to the dough, using the electric mixer to beat the dough after each addition, making sure to scrape the bowl and fully blend everything together.

In a pastry bag fitted with an open star decorating tip (#1M,) add the dough, being sure not to overfill.

Pipe the dough onto the air fryer racks into 3 inch strips, using kitchen scissors to cut the dough.

Cook the churros in the preheated air fryer for about 8 minutes or until golden brown.

For the coating: Combine the sugar and cinnamon together in a medium sized bowl.

When churros are done, add them to the cinnamon and sugar mixture and toss to coat completely.

Churros are ready to serve warm or after cooled .