Prepare Your Workspace: Line a baking sheet with foil and preheat your oven to 350°F (175°C). Make sure you have all ingredients measured and ready to go as the process moves quickly once you start.
Make the Caramel Base: In a large saucepan over medium heat, melt the butter and brown sugar together. Allow the mixture to come to a gentle boil, stirring occasionally to ensure everything combines smoothly. This creates the rich caramel base that will coat your crackers.
Add Flavor Enhancers: Remove the saucepan from heat, then stir in the vanilla extract and 2 teaspoons of cinnamon. Mix thoroughly until all ingredients are completely incorporated. The vanilla and cinnamon will give the caramel its distinctive churro-like flavor profile.
Coat the Crackers: Add both bags of oyster crackers to the caramel mixture. Gently fold the crackers into the mixture until every piece is thoroughly coated with the sweet caramel sauce. Be careful not to crush the crackers while mixing.
Bake the Mix: Spread the coated crackers evenly on your prepared baking sheet. Place in the preheated oven and bake for 15 minutes. This baking process will help set the caramel coating and give the crackers a wonderful crunch.
Prepare the Cinnamon-Sugar Coating: While the crackers are baking, combine 1 cup of granulated sugar, 2 teaspoons of cinnamon, and 1 teaspoon of salt in a small bowl. Mix well to ensure the cinnamon and salt are evenly distributed throughout the sugar.
Apply the Cinnamon-Sugar Coating: After removing the baked crackers from the oven, let them cool for 2-3 minutes. While still warm (but not hot), transfer the crackers to a large mixing bowl. Sprinkle the cinnamon-sugar mixture over the crackers and toss gently until all pieces are evenly coated.
Cool Completely: Allow the churro snack mix to cool completely before serving or storing. As it cools, the coating will set and create that perfect churro-like texture.