Preheat the air fryer: Set to 350°F (175°C) for 3–5 minutes so the basket is hot and ready.
Prep the dough: Open the biscuit can and separate the biscuits. Use a small round cutter or the wide end of a piping tip to punch a hole in the center of each biscuit.
Save the holes for donut holes.
Lightly grease the basket: Mist with oil spray or rub a little butter on the grate to prevent sticking. Avoid aerosol sprays with propellants that can damage nonstick coatings.
Air fry the donuts: Arrange 3–4 donuts in a single layer, leaving space so air can circulate. Cook at 350°F (175°C) for 5–7 minutes, flipping halfway, until golden brown.
Cook the holes: Air fry the donut holes for 3–4 minutes, shaking once, until puffy and lightly browned.
Finish with butter and sugar: Brush warm donuts with melted butter.
Roll in cinnamon sugar or dust with powdered sugar. If glazing, let them cool 2–3 minutes first, then dip or drizzle.
Serve warm: They’re best within 15–20 minutes of cooking, while the edges stay crisp and the centers are soft.