In a large sauce pan, add water, butter, sugar and salt. Cook until butter melts and water comes to a boil.
Remove from heat and mix in flour until it forms into a ball of dough. Allow to cool for 5 minutes.
Add in vanilla and one egg and stir until combined. beat eggs with vanilla extract. Then add in the remaining egg until combined and smooth.
Heat your frying oil to 350 degrees.
While heating, combine the cinnamon sugar coating in a shallow dish and prepare the dipping sauce.
Add the ingredients for the dipping sauce in a microwave safe bowl. Cook in the microwave on high for 30 seconds and give it a stir. Then heat again for 30 seconds and stir until chocolate is all melted and smooth.
Place Dough in a pastry bag or gallon sized ziploc bag to pipe into the oil. If you have an open star tip, that gives you the look of the churros in the picture. If you don't have a tip, it's still ok and will work just fine. If using a ziploc bag just snip a corner off with scissors to pipe.
When oil is heated, pipe strips of dough in the oil and fry them for 3-4 minutes. Remove from oil and place on top of paper towels to drain oil.
Then coat each churro with sugar and cinnamon before serving. Serve with the chocolate dipping sauce.