Peel and trim the onion. Cut it in half, then slice each half into 1/2-inch wedges. Carefully separate the wedges into petals, discarding the smaller inner layers.

Set up your dredging station with three bowls: Bowl 1 with flour, garlic powder, onion powder, smoked paprika, cayenne pepper, salt, and black pepper; Bowl 2 with egg and milk; Bowl 3 with Panko breadcrumbs.

Take each onion petal and coat it in the flour mixture, dip it into the egg mixture, then coat it with the Panko breadcrumbs. Repeat until all petals are coated.

Preheat your air fryer to 375°F (190°C). Arrange the petals in a single layer in the basket, ensuring not to overcrowd.

Generously spray the coated petals with olive oil. Air fry for about 5 minutes, flip the petals, spray again, and continue cooking for another 5-10 minutes until golden brown and crispy.

While the petals are cooking, whisk together mayonnaise, sour cream, ketchup, horseradish, smoked paprika, and Worcestershire sauce for the dipping sauce. Chill until serving.

Once cooked, transfer the crispy onion petals to a platter and serve immediately alongside the chilled dipping sauce.