Prep the air fryer: Preheat your air fryer to 320°F (160°C) for 3–5 minutes. Line the basket or tray with parchment cut to fit.
Poke a few small holes in the parchment so air can circulate.
Mix dry ingredients: In a bowl, whisk flour, baking powder, baking soda, and salt until combined. Set aside.
Cream the butter and sugar: In a separate large bowl, beat softened butter and granulated sugar on medium speed for 2–3 minutes until light and fluffy. This helps create that soft, chewy texture.
Add egg and vanilla: Beat in the egg and vanilla extract until smooth.
Scrape down the bowl as needed.
Combine wet and dry: Add the dry ingredients in two additions, mixing on low until just combined. If the dough looks crumbly, mix in 1–2 tablespoons of milk or cream until it holds together and is soft but not sticky.
Shape the cookies: Scoop dough into 1 1/2-tablespoon portions (about a medium cookie scoop). Roll into balls, then roll in granulated sugar or sanding sugar if you like.
Arrange in the basket: Place dough balls on the parchment, leaving about 2 inches between each.
Gently press each ball to about 1/2-inch thick so they spread evenly.
Bake: Air fry at 320°F (160°C) for 6–8 minutes. Look for set edges and slightly soft centers. They’ll continue to set as they cool.
Cool: Let cookies rest in the basket for 2–3 minutes, then transfer to a rack to cool completely.
Optional glaze: Mix 1/2 cup powdered sugar with 1–2 teaspoons milk, a splash of vanilla, and a tiny pinch of salt.
Drizzle over cooled cookies and add sprinkles if desired.