01 - Peel the onions and slice into ½-inch thick rings. Separate the rings and set aside.
02 - In a medium bowl, whisk together all-purpose flour, baking powder, salt, and smoked paprika.
03 - In another bowl, beat the eggs with buttermilk until well blended.
04 - Place panko breadcrumbs in a separate bowl.
05 - Dip each onion ring first into the flour mixture, then the egg and buttermilk mixture, and finally coat thoroughly with panko breadcrumbs. Arrange coated rings on a tray.
06 - Preheat the air fryer to 400°F for 3 minutes.
07 - Place the onion rings in a single layer inside the air fryer basket, spraying lightly with cooking spray. Work in batches if necessary.
08 - Cook for 10 to 12 minutes, flipping halfway through, until the onion rings are golden and crispy.
09 - In a small bowl, whisk together mayonnaise, ketchup, Dijon mustard, lemon juice, garlic powder, cayenne (if using), salt, and black pepper until smooth. Chill until serving.
10 - Serve the hot, crispy onion rings accompanied by the chilled dipping sauce.