• Spray a donut pan with baking spray. Whisk the 1 cup all-purpose flour, 1/4 teaspoon ground nutmeg, 1/4 cup granulated sugar, 1 teaspoon baking powder, and 1/2 teaspoon kosher salt using a small bowl. Fold in the 5 tablespoons milk, 1 large egg, 1/2 teaspoon pure vanilla extract, and 3 tablespoons canola oil until combined in a large bowl.
• Mix the dry ingredients until combined and smooth  Scoop the batter into the piping bag and fill the donut cavity ¾ way full. Set into the air fryer, and set the temperature to 320 degrees F, air fryer setting and cook for 10 to 12 minutes.
• Remove from the air fryer and turn the pan over onto a wire rack and allow to cool.

How To Make Cookie Monster Frosting

• Using a standing mixer, beat the 1 cup butter, 3 cups powdered sugar, 1 teaspoon pure vanilla extract, and 5 tablespoons heavy whipping cream until creamy, smooth, and stiff, with peaks.
• Mix in the 4 drops sky blue gel food coloring until color is thoroughly mixed in.
• Scoop the frosting into the piping bag and set it aside.

How To Assemble Air Fryer Cookie Monster Donuts

• Once donuts are cooled, pipe dollops of frosting all over the top half of the donut Place 1 package edible eyes in the top middle of the donut. 
• Cut a chocolate chip cookie in half and place the half cookie in the bottom corner of the donut, where it looks like the cookie is in the cookie monster's mouth.
• Allow the frosting to harden for 30 minutes before enjoying!