In a medium bowl, whisk together the flour, baking powder, and salt.
In a saucepan over medium heat, combine the water, melted butter, and vanilla extract. Bring to a boil, then remove from heat.
Gradually stir the flour mixture into the liquid until a dough forms. Let the dough cool for about 10 minutes.
In a deep skillet or pot, heat about 2 inches of vegetable oil to 350°F.
While the oil is heating, prepare the cinnamon sugar by mixing the sugar and cinnamon in a shallow bowl.
Once the dough has cooled slightly, use a small cookie scoop or your hands to form bite-sized balls.
Carefully drop the dough balls into the hot oil, frying in batches to avoid overcrowding. Fry for about 2-3 minutes or until golden brown, turning occasionally for even cooking.
Remove with a slotted spoon and drain on paper towels.
While the churro bites are still warm, roll them in the cinnamon sugar mixture until fully coated.
Serve immediately for the best texture.