In a medium pan, add the apple cider over medium-high heat and bring to a boil.
Reduce the heat to low and simmer for about 15 minutes or until the cider reduces to ¼ cup.
Remove the pan from heat and transfer the apple cider into a bowl. Refrigerate to cool.
In a large bowl, add the flour, baking powder, baking soda, ½ teaspoon of cinnamon and salt and mix well.
In another bowl, add the brown sugar, and softened butter and with an electric hand mixer, beat until light and fluffy.
Add the egg and beat well.
Add the cooled apple cider and mix well.
Add the flour mixture and mix until well combined.
Add the grated apple and mix until a dough forms.
Place the dough onto a lightly floured surface and with your hands, knead until a soft dough comes together.
With plastic wrap, cover the dough and refrigerate for about 30 minutes.
Now, place the dough onto a lightly floured surface and roll into 1-inch thickness.
With a 3-inches donut cutter, cut the donuts.
Grease the Air Fryer Basket with cooking spray and then slide inside.
Adjust the temperature of Air Fryer to 360 °F to preheat for 2 minutes.
After 2 minutes, turn off the Air Fryer.
Arrange donuts into the greased Air Fryer Basket and let the dough rest in the turned off air fryer for about 5 minutes.
After 5 minutes, adjust the temperature of Air Fryer to 360 °F for 5 minutes.