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In a medium saucepan, combine the butter, water, sugar, and salt. Cook over medium heat until the butter is melted and the mixture is hot.
Add the flour all at once and quickly stir with a wooden spoon or rubber spatula until a dough forms and pulls away from the sides of the pan.
Remove from the heat and let cool for 5 to 10 minutes.
Transfer the dough to the bowl of a stand mixer fitted with the paddle attachment, or to a large bowl if using a hand mixer.
Mix in the egg and vanilla until fully combined and the dough is smooth.
Transfer the churro dough to a piping bag fitted with a star tip.
Pipe mini churros onto an air fryer-safe parchment liner, leaving a little space between each one.
Air fry at 380°F for 15 to 20 minutes, checking every few minutes after 15 minutes, until the churros are golden on the outside and set.
While the churros are still warm, toss them in the cinnamon sugar until evenly coated.
Serve warm.
In a shallow bowl, stir together the sugar and cinnamon.