In a small saucepan over medium heat, combine water, 2 1/2 tablespoons sugar, salt and 2 tablespoons vegetable oil. Bring to a boil and remove from heat. Stir in flour until mixture forms a ball.
Heat oil for frying in deep-fryer or deep skillet to 375 degrees F (190 degrees C). Pipe strips of dough into hot oil using a pastry bag. Fry until golden; drain on paper towels.
Combine 1/2 cup sugar and cinnamon. Roll drained churros in cinnamon and sugar mixture.
