Clean the mushrooms by wiping them gently with a damp paper towel. Trim the very ends of the stems but leave them mostly intact so the mushrooms hold their shape. Pat them completely dry.
Set up a three-bowl breading station. Place the flour in the first bowl. In the second bowl, beat the eggs with the milk. In the third bowl, combine the italian style breadcrumbs, grated parmesan, garlic powder, onion powder, smoked paprika, salt, and black pepper.
Working one at a time, roll each mushroom in the flour and shake off the excess. Dip it into the egg wash, letting the extra drip off, then roll it in the breadcrumb mixture, pressing gently to create a full even coating.
Preheat the air fryer to 375 degrees F. Arrange the breaded mushrooms in a single layer in the basket, making sure they are not touching. You may need to work in batches. Spray the tops generously with cooking spray.
Cook for 5 minutes, then gently shake the basket or carefully turn the mushrooms. Spray lightly with more cooking spray and cook for another 4 to 5 minutes until the breading is golden and crispy all over.
Transfer to a plate and serve hot with ranch dressing or marinara sauce for dipping. The inside will be perfectly tender and juicy, with a satisfying crunch on the outside.