In a small saucepan over medium heat, combine water, 2 1/2 tbls sugar, salt and 2 tbls oil. Bring to a boil and remove from heat. Stir in flour mixture until fully combined.
Heat oil for frying in deep fryer or skillet to 375 degrees. Add flour mixture into churro maker and pipe strips of dough into hot oil. Fry until golden, turning as needed. Drain on paper towels.
Combine 1/2 cup sugar and cinnamon. Roll drained churros in cinnamon and sugar mixture.