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To make the cinnamon sugar, whisk together the cinnamon and caster sugar in a medium bowl and set aside.
To make the churros dough, bring the milk, butter, salt, sugar, vanilla bean paste and ½ cup water to a simmer in a medium-sized saucepan over medium heat. Using a wooden spoon, add the flour all at once and mix vigorously over the heat until the dough comes together and away from the sides of the saucepan. Transfer the dough to the bowl of a stand mixer and allow the dough to cool slightly.
Once cooled, using a paddle attachment on medium-low speed, add the eggs to the dough, one at a time, making sure to incorporate each egg before adding the next. Continue to beat, scraping down the bowl occasionally, until the dough is smooth and glossy (pull off a small piece of dough and stretch it – it shouldn’t break). Scoop into a piping bag fitted with a large star nozzle.
Add vegetable oil into a large pot to come halfway up the sides. Fit pot with thermometer and heat over medium-high until thermometer registers 350°F or 176℃. Hold the bag at an angle so the tip is just above the surface of the oil. Carefully squeeze the dough into the oil, moving the bag as you squeeze so that the dough is piped 8-10cm long. Cut the dough off at the tip using scissors to release it into the oil. Repeat the process to make more churros. Fry in batches for even colour and cooking time. Turn the churros once and adjust the heat to maintain the oil temperature until golden brown on all sides, 2-3 minutes per side. Remove with tongs or a slotted spoon and transfer to a paper towel-lined baking sheet. Repeat with the remaining dough.
Toss warm churros in the cinnamon-sugar mixture and serve immediately with warm salted caramel sauce.
To make the salted caramel sauce: Place the sugar into a medium saucepan, add 50ml water and mix with a silicone spatula. Place over a medium heat and cook until golden. Swirl the pan (do not stir). Once it reaches a medium to dark caramel colour, remove the saucepan from the heat and add the remaining ingredients. Gently whisk to combine. Use a hand blender to blend the caramel until silky smooth. Serve warm with the hot churros. Store any leftover sauce in the fridge and reheat in a microwave.