Make the Cinnamon-Sugar mixture by whisking ingredients together on a large plate.
Make Cream Cheese Frosting by beating the cream cheese and butter in a large bowl with an electric mixer until smooth. Then add the powdered sugar, vanilla and milk all at once. Add more milk 1 tsp at a time for a thinner consistency, if desired.
For the French Toast Batter: In a deep dish (like an 8x8 pan), mix the cinnamon with a little bit of the milk to make a paste (this keeps the cinnamon from floating to the top), then add the remaining milk, eggs, vanilla, and salt. (Salt breaks down the membranes of the eggs.) Whisk vigorously until combined.
Heat a skillet to medium-high heat or a griddle to 350 degrees Fahrenheit. Melt some butter in the skillet/on the griddle.
Dip a piece of bread in the French toast batter, then flip it over to coat both sides. Immediately place into skillet/on griddle. Repeat with more bread leaving 1-inch between each piece of French toast. Cook 2 to 3 minutes on each side or until cooked through.
Immediately after cooking place the French toast onto the plate with the cinnamon-sugar. Rub the cinnamon-sugar mixture onto both sides of the bread so it will stick. Place onto a serving plate. Repeat with each slice.
Place the Cream Cheese Frosting into a zip-top bag, cut off the corner and squeeze in a zig-zag motion over each plate of Churro French Toast. Enjoy warm!