01 - Peel the onions and slice into ½-inch thick rings. Separate rings carefully and set aside.
02 - In a medium bowl, whisk together all-purpose flour, baking powder, salt, and smoked paprika until evenly combined.
03 - In a separate bowl, beat the eggs with the buttermilk until smooth and homogeneous.
04 - Place panko breadcrumbs in a third bowl for final coating.
05 - Dip each onion ring first into the flour mixture, then immerse in the egg-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 to ensure optimal crisping.
07 - Place the coated onion rings in a single layer inside the air fryer basket. Lightly spray rings with cooking spray. Work in batches if necessary.
08 - Air fry for 10 to 12 minutes, flipping halfway through, until golden brown and crispy.
09 - While the onion rings cook, combine mayonnaise, ketchup, Dijon mustard, lemon juice, garlic powder, cayenne pepper (if using), salt, and black pepper in a small bowl. Stir until smooth and refrigerate until serving.
10 - Serve the hot, crispy onion rings immediately with the chilled dipping sauce.