### Instructions:
1. **Prepare the dough:**
– In a bowl, mix the warm milk, yeast, and sugar. Let it sit for about 5-10 minutes until it becomes foamy.
– Add the egg, melted butter, and salt to the yeast mixture. Stir well.
– Gradually add flour to form a soft dough. Knead for about 5 minutes until smooth and elastic.
2. **Cut the donuts:**
– Roll out the dough on a floured surface until about 1/2 inch thick.
– Use a donut cutter or two different-sized round cutters to cut the donut shapes (one for the outer circle and one for the hole in the center).
3. **Let the dough rise:**
– Place the cut donuts on a baking sheet, cover them, and let them rise for about 30 minutes to 1 hour, until they puff up.
4. **Air fry the donuts:**
– Preheat the air fryer to 180°C (350°F).
– Place a few donuts in the air fryer basket on a piece of parchment paper, making sure they don’t touch each other.
– Cook for 5-8 minutes until golden brown.
5. **Coat with sugar:**
– While still warm, roll the donuts in sugar to coat them evenly.
Enjoy your freshly air-fried donuts!