Active Time – 35 Mins
1/4 cup warm water, warmed (100F to 110F)
1 teaspoon active dry yeast
1/4 cup, plus 1/2 tsp. granulated sugar, divided
2 cups (about 8 1/2 oz.) all-purpose flour
1/4 teaspoon kosher salt
1/4 cup whole milk, at room temperature
2 tablespoons unsalted butter, melted
1 large egg, beaten
1 cup (about 4 oz.) powdered sugar
4 teaspoons tap water
How to Make It
Stir together water, yeast, and 1/2 teaspoon of the granulated sugar in a small bowl; let stand until foamy, about 5 minutes. Combine flour, salt, and remaining 1/4 cup granulated sugar in a medium bowl. Add yeast mixture, milk, butter, and egg; stir with a wooden spoon until a soft dough comes together. Turn dough out onto a lightly floured surface and knead until smooth, 1 to 2 minutes. Transfer dough to a lightly greased bowl. Cover and let rise in a warm place until doubled in volume, about 1 hour.
Turn dough out onto a lightly floured surface. Gently roll to 1/4-inch thickness. Cut out 8 doughnuts using a 3-inch round cutter and a 1-inch round cutter to remove the center. Place doughnuts and doughnuts holes on a lightly floured surface. Cover loosely with plastic wrap and let stand until doubled in volume, about 30 minutes.
Place 2 doughnuts and 2 doughnuts holes in a single layer in the air fryer basket, and cook at 350°F until golden brown, 4 to 5 minutes. Repeat with remaining doughnuts and holes.
Whisk together powdered sugar and tap water in a medium bowl until smooth. Dip doughnuts and doughnut holes in glaze; place on a wire rack set over a rimmed baking sheet to allow excess glaze to drip off. Let stand until glaze hardens, about 10 minutes.