In a shallow dish, combine all-purpose flour, smoked paprika, and 1/4 teaspoon of kosher salt. Mix well to ensure even seasoning.

In a second shallow dish, lightly beat one large egg with a splash of water until well combined.

In a third shallow dish, combine panko breadcrumbs with the remaining 1/4 teaspoon of kosher salt. Stir to ensure that the breadcrumbs are evenly coated with salt.

Slice the sweet onion into rings. Dredge each onion ring first in the flour mixture, then dip into the egg mixture, and finally press into the panko coating.

Lightly coat each coated onion ring with cooking spray.

Place the coated onion rings in the air fryer basket in a single layer. Set the air fryer to 375°F and cook for about 10 minutes.

At the 6-minute mark, flip the onion rings carefully using tongs and continue to air fry for an additional 4 minutes or until golden brown and crispy.

Once cooked, remove the onion rings from the air fryer and serve warm with your favorite dipping sauces.