01 - Peel the onions and slice into 1/2-inch thick rings. Separate individual rings and set aside.
02 - In a shallow bowl, blend flour, baking powder, paprika, garlic powder, salt, and black pepper until evenly combined.
03 - Whisk eggs and milk together in a separate bowl until smooth.
04 - Place panko breadcrumbs in a third shallow bowl, ready for coating.
05 - Dip each onion ring into the flour mixture, then into the egg wash, and finally coat thoroughly with panko breadcrumbs, pressing gently to adhere.
06 - Place breaded rings in a single layer inside the air fryer basket and lightly spray with olive oil.
07 - Air fry at 400°F for 10 to 12 minutes, flipping halfway through and re-spraying with olive oil, until golden brown and crisp.
08 - Whisk together mayonnaise, sour cream, ketchup, Dijon mustard, lemon juice, smoked paprika, and season with salt and pepper to taste until smooth.
09 - Serve the hot, crispy onion rings immediately alongside the prepared creamy dip.