Combine 2 cups flour, 1 cup water, 1/4 cup vegetable oil, 2 tbsp sugar, 1 tsp vanilla extract, and 1/2 tsp salt in a large mixing bowl. Stir until a thick, smooth dough forms without lumps, then let it rest for 5 minutes while your air fryer preheats.
Transfer the dough to a pastry bag fitted with a large star tip. Preheat your air fryer to 375°F for exactly 3 minutes while you prepare your work surface with parchment paper.
Pipe 4-inch churro strands directly onto the air fryer basket lined with parchment, spacing them 1 inch apart. Work in batches to avoid overcrowding the basket, as air fryer churros family summer recipe requires proper air circulation.
Air fry at 375°F for 8-10 minutes until golden brown and crispy. Shake the basket gently halfway through cooking to ensure even browning on all sides.
While churros cook, mix 3 tbsp granulated sugar with 1/4 tsp cinnamon in a shallow bowl. Remove cooked churros immediately and brush with melted butter while still warm.
Roll warm churros in the cinnamon-sugar mixture, coating all sides generously. The butter helps the coating stick perfectly while the churro is still hot.
Arrange finished churros on a serving platter and let cool for 2 minutes before serving. Serve alongside chocolate sauce for dipping and watch your family enjoy these crispy treats.