In a large bowl, mix sugar and cinnamon and set aside.
Cut angel food cake into cubes, approximately 11/2” x 11/2.”
In a large, nonstick skillet, add enough oil to cover 1/4 inch up the bottom of the pan. Heat over medium heat; when oil is hot, add half of the cubes and pan fry until one side is golden brown, flip and pan fry the other side until golden brown, approximately, 1-2 minutes per side, watching closely so they don't burn. When browned, immediately add cubes to the cinnamon/sugar bowl and toss using a spatula (because they are hot!), pressing sugar/cinnamon into the cubes until well coated. Repeat for remaining angel food cake bites.
For the cream cheese frosting, beat the cream cheese until creamy then beat in powdered sugar, vanilla and 3 T milk. Slowly add additional milk for thinner consistency if desired. Drizzle all frosting all over bites or use as a dip.