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You need 4 shallow bowls or deep plates. In the first one combine flour, paprika, and ½ tsp salt. In the second combine buttermilk (or milk and vinegar/lemon juice) and egg, then add ¼ cup of the flour mixture from the first bowl. In the third combine panko breadcrumbs, ½ tsp salt and olive oil with a fork, until the oil is evenly distributed. Put half of the panko in a fourth bowl so you can switch to the second part after the first got sticky.
Using a fork, dredge the onion rings in the flour mixture, drop them in the buttermilk mixture and then dredge them in the panko mixture.
Spray Air Fryer Basket with oil spray. Place onion rings in a single layer in the Air Fryer basket. You can place smaller rings inside bigger rings if necessary, just make sure there is space between them.
Cook at 400°F until golden brown and crispy, about 11-15 minutes. Spray with some cooking spray after about 6 minutes. You don't need to turn the onion rings.
Carefully lift out the onion tings with a cookie spatula or fork and serve.