Line 4 silicone molds (5 cm/2 inch diameter) with cupcake liners and set aside.
To a bowl, add sugar and water. Whisk.
Then add oil and vanilla extract. Mix well, until sugar is completely dissolved.
Sift in flour and baking powder.Mix until dry flour is no longer visible. DO NOT OVER MIX (mix until dry and wet ingredients are just combined). Spoon batter into cupcake mold until 2/3 full.
Preheat Air Fryer at 350oF (180oC) for 2 minutes.Then, place cupcakes on air fryer rack.Air fry at 350oF (180oC) for 3 minutes. Then, lower to 325oF (160oC) for 10 minutes, or until toothpick inserted in the middle of cupcake comes out clean. Remove cupcakes from silicone mold.Then transfer cupcakes to wire rack to cool down completely.