Integrating Artificial Intelligence Generated Content (AIGC) into design education has transformed traditional pedagogies by enhancing creativity, efficiency, and variety. This study result shows that the challenges of AI co-creation in design education encompass multiple dimensions, including the preservation of designer agency, technical adaptability, the ethical planning of co-creative models, and the integration of cultural context and emotional resonance. To meet these challenges, design education must evolve to establish a comprehensive framework that supports AI co-creation. This study proposes a revamped and flexible Double Donut framework that integrates Material Experience (MX) and Cultural Context (CC) in design education with advanced AIGC capabilities, revealing a transformative educational methodology that balances tradition, creativity, technology, and humanity. Through two stages of experience strategy and experience design, this case study focuses on incorporating the extracted qualia semantics and AIGC technologies into craft design projects. This empirical research integrates multiple approaches to help students explore AI tools and develop critical thinking skills to extend and balance the innovative value of Human-AI collaboration, which also advances cross-cultural design development.