Combine water, 2 1/2 tablespoons sugar, salt, and 2 tablespoons vegetable oil in a small saucepan and place over medium heat. Bring to a boil and remove from the heat. Stir in flour, stirring until mixture forms a ball.
Heat oil for frying in a deep fryer or deep pot to 375 degrees F (190 degrees C).
Transfer the dough to a sturdy pastry bag fitted with a medium star tip. Carefully pipe a few 5- to 6-inch strips of dough into the hot oil; work in batches so you don't crowd the fryer. Cook until golden; use a spider or slotted spoon to transfer churros to paper towels to drain.
Combine 1/2 cup sugar and cinnamon. Roll drained churros in cinnamon and sugar mixture.
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