Open the can of biscuits and place them on a non-stick surface (i.e. silicone mat, wax paper, cutting board) or a plate. This will allow them to rise slightly as you are prepping.
Create a hole in each of the biscuits using your tool of choice. As you can see in the photo, I used a large piping tip, the bottom was the perfect size! Now you have 8 large donuts and 8 donut holes to air fry.
Preheat your air fryer for a few minutes at 350°F. Once preheated, spray the basket with non-stick spray, place 3-4 donuts and holes in the basket and spray the top of them. Cook each side for 3-4 minutes, spraying the other side after flipping.
Once the donuts are nice and brown on each side, remove them from the air fryer and allow them to cool. While the donuts are cooking and cooling, make the coconut lime glaze.
Add all of the ingredients for the glaze into a bowl and whisk together to fully incorporate the powdered sugar. You can add more lime juice or a little milk if you want a thinner glaze.
Once your donuts have cooled, top with the glaze and sprinkle with toasted coconut. Enjoy!