In a bowl, whisk together the flour, granulated sugar, baking powder, salt, and cinnamon.
Add the egg, milk, and vanilla extract to the dry ingredients. Whisk until the batter is smooth and pourable with no lumps.
Preheat the air fryer to 375°F (190°C) for 3 minutes. Cut parchment paper into small squares that fit inside the basket. Spray the parchment generously with cooking spray.
Pour the batter into a squeeze bottle or a zip-top bag with a small corner cut off. Drizzle the batter onto the parchment squares in a swirling, overlapping pattern to form bite-sized discs about 3 inches wide. Spray the tops with cooking spray.
Carefully place the parchment squares with the funnel cake bites into the air fryer basket. Air fry at 375°F for 5 to 6 minutes, flipping halfway through and peeling off the parchment, until golden brown and crispy on both sides.
Remove and immediately dust generously with powdered sugar while still hot. Drizzle with chocolate sauce or strawberry sauce if desired and serve right away.