Peel the sweet onions and cut each one into 6 to 8 wedges. Separate the layers of each wedge to create individual onion petals. Try to keep 2 to 3 layers together per petal for a meatier bite.
Set up a three-station breading line. In the first shallow dish, combine the all-purpose flour, smoked paprika, garlic powder, onion powder, salt, and cayenne pepper and mix well. In the second dish, whisk together the eggs and hot sauce. Place the panko breadcrumbs in the third dish.
Working in batches, dredge each onion petal in the seasoned flour, making sure to coat all sides. Shake off the excess, then dip into the egg mixture, letting any excess drip off. Press firmly into the panko breadcrumbs on all sides.
Preheat the air fryer to 375 degrees F. Arrange the breaded onion petals in a single layer in the basket - do not stack or overlap them. Spray the tops generously with nonstick cooking spray.
Air fry at 375 degrees F for 8 to 10 minutes, carefully flipping each petal halfway through. Give the flipped side a spray of cooking spray as well. Cook until the coating is crispy and golden brown and the onion inside is tender.
Remove the onion petals from the air fryer and let them cool for 1 to 2 minutes. Repeat with remaining batches. Serve with ranch dressing or spicy mayo for dipping.