Cut off the top ½ inch of the onion. Peel the paper layers off.
Turn it cut side down on a cutting board. Starting about a ¼ inch down from the root, make a slice all the way down to the cutting board. Repeat to make four evenly spaced cuts around the onion. Continue slicing between each section to form 16 slices in the onion. Turn the onion back over and separate the petals.
In a mixing bowl, mix the flour, paprika, salt, pepper, garlic powder, thyme, and oregano.
In a separate bowl, whisk the milk and eggs together.
Place the onion in the flour mixture and cover the entire onion. Separate petals and spoon flour between each layer. Shake off excess flour.
Transfer the onion to the egg mixture. Spoon the egg mixture over each layer, making sure to separate the petals.
Next, place the onion on a plate or large bowl and cover with panko, making sure to cover every petal and in between.
Carefully lift into the air fryer basket.
Spray the entire onion with an olive oil spritzer.
Insert basket into the air fryer and cook at 375° for 15 minutes.
While the onion is cooking, whisk all of the sauce ingredients together until well combined.
Remove and place on a serving plate. Serve with dipping sauce.
Notes
The sauce can be stored in an airtight container in the refrigerator for up to 1 week and is great when used on meats, sandwiches, or as a dip for vegetables.