Preheat an airfryer.
Meanwhile, use a shot glass or water bottle cap to cut a hole into the middle of each biscuit dough to form a donut.
Add 4 donuts at a time to the air fryer and cook for 5 minutes.
After the donuts are done, add the donut holes to the air fryer and cook for 2-3 minutes.
While the donuts are cooking, make the icing.
In a bowl, combine the butter, powdered sugar, vanilla, milk, & arrowroot flour.
Mix the icing using a mixer until smooth (you can use less milk if you like thicker icing).
Dip the donuts into the icing to coat the tops and then sprinkle on coconut.