This recipe brings back many wonderful memories of my Grandma. I can remember it like it was yesterday. Getting off the school bus and going in the house to find out Grandma was making us Churros for an after school snack. Miss you terribly and think about you often.
In a medium saucepan, combine water, butter, brown sugar, and salt. Bring to boiling over medium heat Add flour all at once, stirring vigorously with a wooden spoon. Cook and stir until mixture forms a ball and pulls away from the sides of the pan. Remove from heat. Cool for 10 minutes. Add egg and vanilla, beating well with a wooden spoon.
Transfer mixture to a decorating bag fitted with a large star tip. If you do not have a decorating bag put in a regular freezer or storage bag and cut off the corner. They won't be as pretty but will taste just as good.
Heat oil to 375 degrees and fry a couple of churros at a time for 2 mins or until golden brown turning once. Remove from oil and sprinkle generously with your cinnamon sugar mixture.
For the chocolate sauce in a heavy small saucepan combine semisweet chocolate pieces, butter, ancho chile pepper (if desired), and cinnamon; cook and stir over medium heat until chocolate is melted. Stir in the granulated sugar; gradually add evaporated milk, stirring frequently to dissolve the sugar. Bring to boiling; reduce heat. Boil gently over low heat for 8 minutes, stirring frequently. Remove from heat. Cool slightly. Serve warm sauce with warm churros.