Add water, butter, salt and 1/4 teaspoon cinnamon to a small or medium saucepan over medium heat. Stir and bring the mixture to a roiling boil.
Turn off the heat, add flour and stir vigorously with a rubber spatula until mixture forms a ball. Set aside and let rest for 7 minutes.
Add eggs, one at a time, and stir until combined. Set aside.
Heat oil in a deep medium-sized skillet or 1-quart saucepan over medium-high heat or until the temperature reaches 350 degrees F on a candy thermometer.
Spoon the dough into pipping bag fitted with a large closed star tip. Carefully pipe 1 to 2 inch strips of dough over the saucepan, cut with a knife and drop into the hot oil. Repeat until churro bites fill saucepan with room to fry being careful not to overcrowd. I usually fit about 8 small churros in a small saucepan.
Fry churros until golden brown, stirring occasionally at the beginning to prevent them from sticking to each other. Remove with a slotted spoon or wire skimmer and drain on a plate or baking sheet lined with paper towels.
In a small bowl, whisk together sugar and 1 teaspoon cinnamon. Toss the churro bites until coated. Serve warm or with chocolate sauce, if desired.