Preheat air fryer or oven to 350 degrees. Lightly grease donut hole pan if using and set aside. (For frying, heat one inch of oil in a pan and heat to 350 degrees)
In a bowl, stir together the flour, applesauce and ½ tsp of cinnamon until mixed together into a sticky ball.
In a separate small bowl, mix together ¼ cup sugar and remaining ½ tsp cinnamon then set aside.
Place ½ tablespoon of dough into each insert of the donut hole pan. (For frying, roll ½ tablespoon of dough into a ball and set aside).
OVEN BAKE: To bake in the oven, place donut holes into the oven and bake at 350 degrees for 10-12 minutes or until donuts are lightly browned and spring back when lightly pressed. Remove from oven and allow to cool for several minutes before removing from the molds.
AIR FRY: To air fry, place the donut hole mold into the air fryer and bake for 8-11 minutes or until donut holes are lightly browned and spring back when lightly pressed. Remove from air fryer and allow to cool for several minutes before removing from the molds.
FRYING: Place approximately half of the donut holes into the hot oil. Cook until one side is browned, then flip and cook the other side until lightly browned. Remove from fryer then immediately roll in cinnamon sugar. Serve.
Melt the butter. Roll air fried or baked donuts in the melted butter, then roll in the cinnamon and sugar. Serve.