In a small bowl, combine 1/4 cup warm milk with sugar and active dry yeast. Stir gently and allow the mixture to rest for about 15 minutes.

In a large mixing bowl, whisk together all-purpose flour and salt. Once the yeast mixture is frothy, pour it into the bowl and incorporate warm water gradually.

Softly fold in the vegan butter into the dough until fully incorporated.

Lightly coat the dough ball with oil, cover it with a kitchen towel, and place it in a warm environment for 1 to 2 hours to rise.

After the dough has risen, roll it out on a floured surface to about 1/2 inch thickness and cut out donuts.

Preheat your air fryer to 160°C (320°F) for approximately 3 minutes.

Brush the air fryer basket with oil, arrange donuts leaving space, and lightly brush tops with oil. Air fry for 10-13 minutes, flipping halfway.

Remove donuts from the air fryer and cool on a wire rack for a few minutes before serving.