Creating your Crispy Air Fryer Churro Bites is a straightforward process. Follow these step-by-step instructions for best results:

1. Prepare the Churro Dough: In a medium saucepan, combine the water, 1 tablespoon of sugar, and butter over medium heat. Stir until the butter melts completely.
2. Add Flour: Remove the saucepan from heat and add the flour. Stir continuously until the mixture forms a ball of dough that pulls away from the sides of the pan.
3. Cool the Dough: Allow the churro dough to cool for about 5 minutes before adding the egg. Once cooled, add the vanilla extract and mix thoroughly.
4. Shape Churros: Transfer the dough to a piping bag fitted with a star tip. Pipe small bites (about 2-3 inches long) onto a parchment-lined cutting board or plate. Cut the dough with scissors.
5. Preheat Air Fryer: Preheat the air fryer to 375°F (190°C) for about 5 minutes.
6. Air Fry the Bites: Place the churro bites in a single layer in the air fryer basket, ensuring they do not touch. Cook for 10-12 minutes or until golden brown.
7. Prepare Coating: In a small bowl, mix together 1/2 cup granulated sugar and 1 teaspoon of cinnamon.
8. Coat the Churros: Once cooked, immediately roll the hot churro bites in the cinnamon-sugar mixture until well coated.
9. Serve Warm: Allow the churro bites to cool slightly before serving, but they are best enjoyed warm.

Throughout these steps, ensure that you maintain an eye on the churros, adjusting cooking time based on your air fryer model.