01 - Peel the onions and slice them into 1/2-inch thick rings. Separate the rings and set aside.
02 - In a shallow bowl, combine the flour, baking powder, paprika, garlic powder, salt, and black pepper.
03 - In a separate bowl, whisk together the eggs and milk until fully blended.
04 - Place the panko breadcrumbs in a third shallow bowl for coating.
05 - Dip each onion ring first into the dry flour mixture, then into the egg mixture, and finally coat evenly with panko breadcrumbs, pressing gently to adhere.
06 - Place the breaded rings in a single layer inside the air fryer basket and lightly spray with olive oil.
07 - Cook at 400°F for 10 to 12 minutes, flipping halfway and spraying again with olive oil, until golden brown and crisp.
08 - Meanwhile, whisk together mayonnaise, sour cream, ketchup, Dijon mustard, lemon juice, smoked paprika, salt, and pepper in a small bowl until smooth. Adjust seasoning as needed.
09 - Serve the hot onion rings immediately alongside the creamy dip.