In a mixing bowl, combine warm water, sugar, and instant yeast. Let it sit for 5 minutes until bubbly.

Add flour, baking powder, and vegetable oil to the yeast mixture. Mix until a dough forms.

Knead the dough on a floured surface for about 5 minutes until smooth. Place in a greased bowl, cover, and let it rise for 1 hour until doubled in size.

In a separate bowl, mix shredded chicken, soy sauce, hoisin sauce, sesame oil, and green onion. Set aside.

Once the dough has risen, punch it down and divide it into 8 equal pieces. Roll each piece into a ball, then flatten into a circle about 3 inches in diameter.

Place about 1 tablespoon of the chicken mixture in the center of each circle. Fold the dough over the filling and pinch to seal.

Preheat your air fryer to 350°F (175°C).

Line the air fryer basket with parchment paper and place the bao buns in a single layer, leaving space between them.

Air fry the buns for 10-12 minutes or until they are fluffy and slightly golden on top.

Serve warm with additional soy sauce for dipping.