Prepare the pan: Choose a round 6–7 inch cake pan or loaf pan that fits your air fryer basket.
Lightly oil and line the base with parchment for easy release.
Mix the dry ingredients: In a large bowl, whisk together flour, instant yeast, sugar, and salt until evenly combined.
Add liquids: Pour in warm water, warm milk, and oil. Stir with a spoon until a shaggy dough forms. If it looks dry, add 1–2 tablespoons more warm water.
Knead: Turn the dough onto a lightly floured surface and knead for 8–10 minutes, until smooth and elastic.
The dough should be soft but not sticky. Add small sprinkles of flour only if needed.
First rise: Place dough in a lightly oiled bowl, cover, and let it rise in a warm spot for 45–60 minutes, or until doubled in size.
Shape: Punch down the dough gently. Shape into a smooth round or log and place in the prepared pan.
For a pull-apart style, divide into 6–8 balls and arrange snugly in the pan.
Second rise: Cover the pan loosely and let the dough rise again for 25–35 minutes, until puffy and risen about 1 inch.
Preheat the air fryer: Set to 320°F (160°C) for 3–5 minutes. This helps the bread cook more evenly.
Create a moisture lock: Cover the pan tightly with foil, tenting it slightly so it doesn’t stick to the dough. This traps steam, mimicking traditional dombolo.
Cook covered: Air fry at 320°F (160°C) for 22–25 minutes for a small loaf, 25–30 minutes for a thicker loaf.
The bread should feel set and springy.
Optional browning: Remove the foil and air fry at 350°F (175°C) for 4–6 minutes to get light color on top. This step is optional—traditional dombolo is usually pale.
Check doneness: Internal temperature should be around 190–200°F (88–93°C). If you don’t have a thermometer, insert a skewer into the center; it should come out clean.
Rest and serve: Let the bread cool in the pan for 5 minutes, then lift out.
Brush with melted butter if you like. Serve warm, sliced or pulled apart.