In a saucepan over medium heat, combine water, butter, 2 tablespoons of sugar, and salt. Stir until the butter has melted and bring the mixture to a boil.
Once boiling, remove the saucepan from heat and quickly stir in the flour and baking powder until a dough forms.
Allow the dough to cool for about 5 minutes. Then, add the egg and mix until fully incorporated and smooth.
Preheat your air fryer to 375°F (190°C) while you prepare the churro bites.
Transfer the dough to a piping bag fitted with a large star tip. Pipe small bite-sized pieces (about 1-inch long) onto a sheet of parchment paper.
Spray the air fryer basket with cooking spray, then place the churro bites in a single layer, ensuring they are not touching each other (you might need to do this in batches).
Lightly spray the tops of the churro bites with cooking spray before air frying. Cook for 8-10 minutes, or until they are golden and crispy.
While the churro bites are cooking, mix together the 1/2 cup of sugar and 1 teaspoon of cinnamon in a shallow bowl.
Once the churro bites are done, immediately toss them in the cinnamon-sugar mixture until well coated.
Serve warm and enjoy your delightful crispy churro bites!