STEP ONEFor Coconut Dulce de Leche Sauce: HEAT sweetened condensed milk in 2-quart saucepan on medium heat, stirring occasionally, just until it comes to a boil. Cook, whisking constantly, 10 to 12 minutes or until it thickens, turning a light golden color. Reduce heat to low, if needed, to prevent scorching. Remove from heat. Whisk in coconut milk until smooth.
STEP TWOFor Churros: HEAT water and butter in 3-quart saucepan until water boils. Stir in flour and salt. Beat until dough forms a ball. Add eggs. Beat vigorously with a spoon until smooth. (Mixture will resemble stiff mashed potatoes.)
STEP THREEPOUR oil into large, deep skillet. Heat to 350°F. over medium heat. Spoon dough into large (16-inch) decorating bag* fitted with large (1M) star-shaped tip*. Squeeze a strip of dough about 4 to 5-inches in length into hot oil, using a knife to make a clean cut from tip. Fry 4 or 5 at a time for 2 to 2 1/2 minutes, turning occasionally until golden brown. Drain on paper towels.
STEP FOURCOMBINE sugar and cinnamon. Roll warm churros in sugar cinnamon mixture. Serve with warm Coconut Dulce de Leche Sauce.