Preheat the Air Fryer to 375˚F.
Carefully separate the sliced onions into rings.
Place the flour in a shallow bowl.
In a separate shallow bowl, whisk the eggs with the milk.
Place the panko crumbs in a separate bowl; whisk in the chili powder, paprika garlic powder, salt, and pepper.
Dip the onion rings in the egg mixture; then, dip in the flour and coat all sides with the flour.
Again dip them back in the egg mixture, coating completely.
Add to the breadcrumbs-mixture to thoroughly coat; use your fingers to press the crumbs to the onions.
Spray the air fryer basket with cooking oil.
Place each onion ring in the air fryer basket; DO NOT crowd the basket. Leave a little bit of room in between the onion rings. You will have to cook the onion rings in several batches.
Spray onion rings with cooking oil.
Cook for 5 minutes.
Flip over the onion rings; spray with cooking oil, and continue to cook for 5 more minutes.
Remove onions from air fryer basket.
Serve with dipping sauces.