1. Combine water, granulated sugar, salt, and vegetable oil in a small saucepan over medium heat and bring to a boil. Remove from heat and stir in flour and cocoa powder until just fully combined and it forms a dough ball.
2. Heat enough oil in a small fry pan to fill about 1" of the pan to 350-375°F. You can use a larger fry pan (or deep fryer), but it will require more oil. Place churro dough in a pastry bag fitted with a star-shaped tip about 1/4"-1/2" in diameter. If you choose a tip that is too big, the inside of the churro will not cook fully. Pipe about 4-5" strips of dough into hot oil a couple at a time, pinching off dough with your fingers as needed. Fry until golden and drain on paper towels.
3. Combine churro coating ingredients in a plastic bag. Add in cooked churros and gently shake until all churros are fully coated. Alternatively, you can roll churros in coating on a plate.

Peanut Butter Sauce

1. Combine corn syrup, sugar, salt, and butter in a small saucepan over medium heat. Bring to a boil, and once sugar is dissolved, remove from heat and stir in peanut butter and milk. Let cool slightly but serve warm. Can be made ahead of time and reheated gently before serving.