Preheat the air fryer: Set to 375°F (190°C) for 3–5 minutes so the basket is hot before the bread goes in.
Par-cook the hot dogs: Place hot dogs in the air fryer basket and cook for 3–4 minutes until warmed and slightly blistered. Remove and set aside.
Prep the buns: Lightly spread the exterior of each bun with softened butter or mayonnaise. Keep the inside dry for better cheese adhesion.
Layer the cheese: Open each bun and place one slice of cheese on the bottom and one on the inner top.
If using shredded cheese, use about 1/3 cup per bun.
Add extras: If using onions, peppers, or bacon, tuck a small amount under the hot dog to keep the top layer flat.
Assemble: Nestle a hot dog into each bun over the bottom cheese. Close the bun gently so the top cheese touches the dog.
Air fry: Arrange the assembled hot dogs in a single layer. Cook at 375°F (190°C) for 4–6 minutes until the bread is golden and the cheese is fully melted.
Check at minute 4 to avoid over-browning.
Season and serve: Sprinkle with a pinch of garlic powder or black pepper if you like. Serve hot with your favorite condiments.