Prepare the Yeast Mixture: In a mixing bowl, combine warm milk and sugar, stirring until the sugar dissolves. Sprinkle the active dry yeast over the liquid, letting it rest for about 15 minutes.

Mix Dry Ingredients: Whisk together the all-purpose flour and salt. Gradually pour the yeast mixture into the flour mix, along with water, to form a sticky dough.

Incorporate Vegan Butter: Knead the dough and incorporate the vegan butter until the mixture is homogenous. Place the dough in an oiled bowl, cover, and allow it to rise for 1 to 2 hours.

Shape the Donuts: Turn the dough onto a floured surface and roll it out to about ½ inch thick. Cut out the donuts using a donut cutter.

Preheat the Air Fryer: Preheat your air fryer to 160°C (320°F) for about 3 minutes and brush the basket with oil.

Air Fry the Donuts: Place the shaped donuts in the air fryer, brush with oil, and cook for 10-13 minutes, flipping halfway through.

Cool and Serve: Remove the donuts from the air fryer and let them cool on a wire rack for a few minutes before coating with powdered sugar or glaze.