Remove the biscuits from the package and place them on a lightly floured surface.  Use a small circle cookie cutter to cut the center out of the biscuits.

Place four biscuits in the air fryer (make sure they aren't touching) and cook at 365 degrees for 6-7 minute until the biscuits are golden brown on the outside.  Keep in mind they should be the color of donuts, not biscuits.

Remove the first set of donuts from the air fryer and place them on a wire rack to cool while you cook the remaining donuts.

If you'd like to cook the donut holes, place them in the air fryer at 365 degrees for 3-4 minutes.

While the donuts cook, combine the powdered sugar, milk, and vanilla in a small bowl.

Allow the donuts to cool before dipping them icing. 

Decorate with sprinkles, if desired.  Serve immediately.