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Cut off the top ½-inch of the onion, leaving the root end of the onion intact. Place the now flat, stem end of the onion down on a cutting board with the root end facing up. Make 16 slices around the onion, starting with your knife tip ½-inch away from the root so that you never slice through the root. Begin by making slices at 12, 3, 6 and 9 o’clock around the onion. Then make three slices down the onion in between each of the original four slices. Turn onion over, gently separate the onion petals, and remove the loose pieces of onion in the center.
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Combine the eggs and milk in a bowl. In a second bowl, combine the flour, salt, black pepper, cayenne pepper, paprika, and garlic powder.
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Pre-heat the air fryer to 350ºF.
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Place the onion cut side up into a third empty bowl. Sprinkle the flour mixture all over the onion to cover it and get in between the onion petals. Turn the onion over to carefully shake off the excess flour and then transfer the onion to the empty flour bowl, again cut side up.
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Pour the egg mixture all over the onion to cover all the flour. Let it soak for a minute in the mixture. Carefully remove the onion, tipping it upside down to drain off any excess egg, and transfer it to the empty egg bowl, again cut side up.
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Finally, sprinkle the flour mixture over the onion a second time, making sure the onion is well coated and all the petals have the seasoned flour mixture on them. Carefully turn the onion over, shake off any excess flour and transfer it to a plate or baking sheet. Spray the onion generously with vegetable oil.
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Transfer the onion, cut side up to the air fryer basket and air-fry for 25 minutes. The onion petals will open more fully as it cooks, so spray with more vegetable oil at least twice during the cooking time.
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While the onion is cooking, make the dipping sauce by combining all the dip ingredients and mixing well. Serve the Blooming Onion as soon as it comes out of the air fryer with dipping sauce on the side.