Preheat the air fryer for 5 minutes at 350°F to ensure it reaches the right temperature for even cooking.

Wash and dry the baby potatoes thoroughly. Cut them in half; if any potatoes are particularly large, quarter them instead to ensure even cooking.

In a large bowl, combine the melted butter, vegetable or olive oil, Italian seasoning, garlic powder, salt, black pepper, crushed red pepper flakes (add less if you want less heat), and grated Parmesan cheese. Mix until well combined. I like to use freshly grated Parmesan for the best flavor and coating.

Add the prepared potatoes from Step 2 to the bowl with the seasoning mixture from Step 3. Toss well to ensure all the potatoes are evenly coated.

Line the air fryer basket with parchment paper. Arrange the coated potatoes in a single layer. Air fry for 10 minutes at 350°F, then toss the potatoes and continue cooking for another 5–8 minutes or until they are golden and crispy. For best results, avoid overcrowding the basket.

Once the potatoes are golden and cooked through, transfer them to a serving dish. Sprinkle a little more grated Parmesan on top before serving for extra flavor and a nice finish.