Preheat an air fryer to 350 degrees F (175 degrees C). Place a parchment paper round into the bottom of the air fryer. Spray with nonstick cooking spray.

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Mix flour, 1/4 cup sugar, milk, egg, baking powder, and salt together in a small bowl. Stir until combined.

Mix 2 tablespoons sugar with cinnamon in another bowl and sprinkle over apples until coated. Mix apples into the flour mixture until combined.

Drop fritters using a cookie scoop onto the bottom of the air fryer basket.

Air-fry in the preheated fryer for 5 minutes. Flip fritters and cook until golden, about 5 minutes more.

Meanwhile, mix confectioners’ sugar, milk, caramel extract, and cinnamon together in a bowl. Transfer fritters to a cooling rack and drizzle with glaze.