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In a large bowl, cream butter and sugar. Add greek yogurt, and eggs. Whisk until well combined. In a separate small bowl, mix flour, baking powder, salt, and 3 tbsp sprinkles. Slowly incorporate dry ingredients into the wet ingredients. Use your hands to knead the dough. Place dough into the fridge for 1 hour prior to cooking. (or overnight to prepare the next morning)
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Lightly flour a cutting board or flat work surface. Roll dough out with a rolling pin to ½” thickness. Use a 3” biscuit cutter to cut 8 holes into the dough. Use a ½” biscuit cutter to cut the center of each circle to form a donut.
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Preheat the air fryer at 350* for 5 minutes.
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Spray air fryer basket with non-stick cooking spray. Arrange donuts in the air fryer at least ½” apart, multiple batches may be necessary. Cook for 8 minutes, flipping halfway through. **Cook donut holes at the same time.**
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While the donuts cook, prepare the frosting. Add confectioners sugar to a small bowl. Whisk in heavy whipping cream until smooth.
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Remove donuts from the air fryer and let cool for 5 minutes.
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One at a time, dip each donut into glaze, then immediately cover with sprinkles. This way the glaze will not set and the sprinkles will stick to the donuts. Serve donut holes on the side.
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Enjoy!