Add a teaspoon of dry yeast and ½ cup of sugar in warm milk and whisk it well.
Gradually add 2 eggs in it.
Add a teaspoon of vanilla extract , ½ teaspoon of salt and ¼ teaspoon of crushed nutmeg in it.
Add 6 teaspoons of butter in it.
Add 1 cup of all-purpose flour in it and mix it well until it forms a soft dough.
Cover the bowl with fine piece of cloth and let it rest for 1 and ½ hours.
Now take the dough, sprinkle some flour on it and give it a good round shape with the help of rolling pin.
Use donut cutter to give it a donut shape. This will make 12-13 donuts.
Set air fryer basket in the instant pot and place a batch of 3-4 donuts in it and cover the lid.
Set a temperature on 320F and air fry them for 6 minutes.
Remove the lid and allow them a quick release.
Dish out your donuts. Sprinkle some powdered sugar on them for a good sweet taste and enjoy!
Video
Notes
You can add some more flour to the batter if you find the dough very gooey. This could be because of the difference in ingredients' intensity to absorb.
If you want more raised Donuts, Keep them aside for 10-15 minutes covered with a cloth after cutting into shapes. they will double in size. Then cook them in batches in an instant pot.
You can use vanilla essence instead of vanilla extract. Depends on your own choice.