Preheat the air fryer to 350°F (175°C).
In a large bowl, combine the flour, baking powder, cinnamon, salt, nutmeg, and granulated sugar. Mix well.
In a separate bowl, whisk together the milk, egg, vanilla extract, and melted butter until smooth.
Pour the wet ingredients into the dry ingredients and stir until just combined. Gently fold in the diced apples.
Using a spoon or cookie scoop, drop spoonfuls of the batter into the air fryer basket, leaving space between each fritter.
Air fry the fritters for 8-10 minutes, flipping halfway through, until they are golden brown and cooked through.
While the fritters are cooking, prepare the glaze by whisking together the powdered sugar, milk, and vanilla extract in a small bowl until smooth.
Once the fritters are done, remove them from the air fryer and drizzle with the glaze while they are still warm.