Choose your pan: Use a 6-inch round cake pan or a 7-inch if it fits your air fryer.
Make sure it’s oven-safe and about 2 inches tall. Line the bottom with parchment and lightly grease the sides.
Preheat the air fryer: Set it to 320°F (160°C). Preheating helps the cake rise evenly and prevents soggy centers.
Mix dry ingredients: In a medium bowl, whisk 1 cup all-purpose flour, 3/4 cup granulated sugar, 1 1/2 teaspoons baking powder, and 1/4 teaspoon salt.
Mix wet ingredients: In another bowl, whisk 6 tablespoons melted unsalted butter (slightly cooled), 2 large eggs, 1/2 cup whole milk, and 2 teaspoons vanilla extract until smooth.
Combine: Pour the wet mixture into the dry.
Stir just until no flour streaks remain. Don’t overmix; a few small lumps are fine.
Add marshmallows: Fold in 1 cup mini marshmallows. If you like, fold in 1–2 tablespoons rainbow sprinkles for a funfetti vibe.
Fill the pan: Pour the batter into the prepared pan and smooth the top.
Scatter another 1/2 cup mini marshmallows over the surface for a toasty top.
Bake: Place the pan in the air fryer basket. Cook at 320°F for 20–26 minutes, rotating the pan halfway if your air fryer has hot spots. The cake is done when a toothpick inserted in the center (avoid marshmallow pockets) comes out mostly clean with a few moist crumbs.
Cover if needed: If the top marshmallows brown too quickly, tent loosely with foil and continue baking until the center sets.
Cool: Let the cake cool in the pan for 10 minutes, then run a knife around the edge and lift out.
Cool completely on a rack before frosting.
Quick frosting (optional): Beat 4 ounces cream cheese with 1 cup powdered sugar and 1–2 tablespoons milk or cream until smooth and spreadable. Add 1/2 teaspoon vanilla and a pinch of salt. Spread over the cooled cake and add sprinkles.
Serve: Slice with a lightly oiled knife to glide through the marshmallow topping.
Enjoy the gooey swirls and soft crumb.