Prepare the Oreo Crumbs:
Using a food processor, crush Oreo cookies (with filling removed) into a fine crumb consistency. Divide into portions for the churro dough and the coating.
Make the Churro Dough:
In a medium saucepan, combine water, sugar, butter, and salt. Bring to a boil over medium heat. Remove from heat and add the flour and ¼ cup of crushed Oreos. Stir vigorously until the dough forms a ball and pulls away from the sides of the pan.
Incorporate Wet Ingredients:
Let the dough cool for 5 minutes. Add the egg and vanilla extract, mixing until smooth and fully combined.
Heat the Oil:
Heat vegetable oil in a deep frying pan or pot to 375°F (190°C).
Pipe and Fry the Churros:
Transfer the dough to a piping bag fitted with a large star tip. Pipe 4–5-inch strips of dough directly into the hot oil, cutting with scissors. Fry 3–4 churros at a time for about 2–3 minutes per side, or until golden brown. Remove and drain on paper towels.
Coat the Churros:
In a small bowl, mix the granulated sugar and ¼ cup of crushed Oreo crumbs. Roll the warm churros in the mixture until evenly coated.
Prepare the Optional Dipping Sauce:
In a bowl, beat the softened cream cheese, powdered sugar, milk, and vanilla extract until smooth. Serve alongside the churros.
Serve and Enjoy:
Your Oreo Churros are ready to enjoy! Serve warm with or without the dipping sauce for a fun cookies-and-cream dessert.