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Step 1
Line a baking sheet with parchment paper. Combine sugar and cinnamon in a shallow bowl; set aside.
Step 2
Remove the biscuits from the can, separate them, and place them on the baking sheet. Use a 1-inch round biscuit cutter (or similarly-sized bottle cap) to cut holes out of the center of each biscuit.
Step 3
Lightly coat an air fryer basket with olive or coconut oil spray (do not use nonstick cooking spray such as Pam, which can damage the coating on the basket).
Step 4
Place 3 to 4 donuts in a single layer in the air fryer (they should not be touching). Close the air fryer and set to 350°F. Cook, flipping halfway through, until the donuts golden-brown, 5 to 6 minutes total. Transfer donuts place to the baking sheet. Repeat with the remaining biscuits. You can also cook the donut holes — they will take about 3 minutes total.
Step 5
Brush both sides of the warm donuts with melted butter, place in the cinnamon sugar, and flip to coat both sides. Serve warm.