In a medium saucepan, combine the water, butter, and caster sugar. Heat over medium until the butter melts and the sugar dissolves.

Once the mixture is simmering, add the plain flour, baking powder, and salt. Stir quickly until a dough forms, pulling away from the sides of the pan.

Remove the dough from the pan and allow it to cool for 5 minutes.

Add the vanilla extract to the dough and mix well.

Heat a deep pan with vegetable oil over medium heat to around 180°C.

Transfer the dough into a piping bag fitted with a star-shaped nozzle.

Pipe the dough directly into the hot oil, cutting it into 10-15 cm lengths.

Fry the churros for 2-3 minutes on each side or until golden brown and crispy.

Once cooked, remove the churros from the oil and place them onto a paper towel to drain excess oil.

In a small bowl, combine the caster sugar and ground cinnamon. Roll the hot churros in this mixture until fully coated.

Serve warm with a side of chocolate sauce or your preferred dipping sauce.