In a saucepan combine water, butter, cooking oil, sugar, and salt. Bring to a boil. Then turn off the heat.
Add flour and whisk quickly until well combined. Then add beaten egg and stir vigorously with wooden spoon until uniform and shiny.
Scoop churro dough into a pastry bag with medium star tip.
In a pot heat the cooking oil and set the candy thermometer on the edge of the pot. Bring to 360-375ºF (180-190ºC). Pipe the churro dough with star-tipped piping bag into the hot oil with 2 inch length (cut with scissors). Fry every 5-6 pieces at a time for 2-3 minutes until golden brown. Set aside.
In a bowl combine sugar and cinnamon powder. Stir until combined. Coat the churros with cinnamon sugar.
In a small saucepan heat the heavy cream until small bubble appear on the edge of the saucepan. Turn off the heat. Add to chocolate chips and stir until well combined.
Serve the cinnamon churro bites on a plate and enjoy with chocolate sauce.