Step 1

In a medium saucepan, combine water, butter, sugar, and salt. Bring to a boil, then reduce heat to low. Add the flour all at once and stir vigorously until the mixture forms a ball and pulls away from the sides of the pan.

Step 2

Remove from heat and let cool slightly. Add eggs one at a time, mixing well after each addition. Stir in vanilla extract.

Step 3

In a shallow dish, combine sugar, cocoa powder, cinnamon, and cayenne pepper. Set aside.

Step 4

Heat vegetable oil in a deep skillet or saucepan to 375°F (190°C).

Step 5

Transfer the dough to a piping bag fitted with a large star tip. Pipe 4-5 inch strips of dough directly into the hot oil, using scissors to cut the dough. Fry 3-4 churros at a time, turning occasionally, until golden brown (about 2-3 minutes per batch).

Step 6

Remove churros from the oil and drain on paper towels. While still warm, roll them in the chocolate-cinnamon sugar coating until fully covered.

Step 7

Heat heavy cream in a small saucepan until simmering. Remove from heat and stir in chocolate chips and cinnamon until smooth.

Step 8

Serve churros warm with the chocolate dipping sauce on the side.