Preheat your oven to 350°F (175°C) and generously grease a donut pan to prevent sticking.

In a large mixing bowl, whisk together flour, sugar, baking powder, and salt.

In a separate bowl, whisk together egg, milk, melted butter, and vanilla bean paste until smooth.

Create a well in the dry mixture, pour in the wet ingredients and stir until just combined.

Fill each cavity of the donut pan about 3/4 full with batter and bake for 15-17 minutes.

In a mixing bowl, beat softened butter with powdered sugar until smooth, then add vanilla bean paste.

Divide the frosting into two bowls, tint one with red food coloring and the other with green.

Pipe the green frosting onto the cooled donuts and add festive sprinkles for decoration.

Serve immediately or store in an airtight container for up to three days.