Prepare the air fryer basket by covering it with parchment paper. If you don't have specific air fryer parchment paper liners (I don't!), then cut a piece of parchment paper to fit your air fryer basket and put holes in it. If you don't have parchment paper, grease the air fryer basket with cooking oil, butter or shortening. Do NOT use non-stick cooking spray because it will damage the non-stick coating on your air fryer basket.
Prepare your dough by opening and separating the biscuits. Use a clean lid from a water or soda bottle and gently but firmly press it down into the center of each biscuit to cut out a hole. Set aside the dough you cut out to make doughnut holes with.
Put the dough into the air fryer basket without any of the edges touching each other or the sides of the air fryer basket. Set the temperature for 400-degrees (F) and time for 8 minutes.
Set a timer for 4 minutes.
While the dough starts cooking, melt the butter in a small bowl.
Mix together the cinnamon and sugar in a second small bowl.
At the 4-minute mark, open the air fryer and gently flip the doughnuts over so they cook evenly on both sides.
When the time is up, the air fryer doughnuts should be golden brown. Let them cool just enough so that you can touch them. Dip both sides of the doughnut first in the melt butter or margarine and then repeat the same way in the cinnamon sugar. You can use your fingers or a spoon to help put even more cinnamon sugar over the doughnut as well.
Serve the doughnuts right away while warm or at room temperature.