Combine 1/2 cup sugar and cinnamon in shallow bowl. Set aside.
In a saucepan over medium-high heat combine water, 3 tablespoons sugar, salt and vegetable oil.
Once boiling, remove from heat and stir in flour. Continuously stir and fold under mixture resembles thick and smooth mashed potatoes.
Preheat vegetable oil for frying.
Fill a piping bag fitted with a star tip with dough. Squeeze churros into oil directly from piping bag.
Once golden on both sides, toss in shallow bowl with cinnamon sugar until evenly coated. Repeat with each fresh churro.
Prepare a double-broiler by placing a bowl on top of a sauce pan filled with 1/4 inch of water.
Fill bowl with 1/2 cup dark chocolate. Bring water to a boil. Once boiling, remove from heat and stir chocolate until smooth.
Add remaining chocolate, ancho chile and stir until smooth.
Dust churros with remaining cayenne. Serve warm.