Proof Active Dry Yeast (1 1/2 teaspoon) in Milk (120 milliliter). Add Granulated Sugar (3 tablespoon) and wait till it’s all bubbly.
Add All-Purpose Flour (250 gram), Vanilla Extract (1 teaspoon), Egg (1), and Salt (1/2 teaspoon). Mix for one minute. Add Butter (40 gram) slowly while mixing.
Knead until donut dough is smooth, elastic, and shiny. Cover it in an oiled bowl and let it rise for an hour in a warm place.
Roll out dough to around ½ inch / 1.2 cm thick with a rolling pin. Cut out donut shapes with a tool or a cup and a smaller cup. Keep the donut “holes”.
Cover donuts with a towel and let them rise for around 15 minutes.
Heat up your air fryer to 355 degrees F (180 degrees C). Wait a minute, spray with Oil (to taste), then lay donuts gently at the bottom of the basket. Spray donuts with a light mist of oil, too (but that’s optional).
Air fry for around 3-6 minutes until a light golden brown.
Decorate as desired, then serve!