In a shallow bowl, thoroughly mix together the all-purpose flour, ranch powder, kosher salt, and freshly ground black pepper. In a second shallow bowl, whisk the large eggs and water until smooth. For the third bowl, add panko breadcrumbs and sprinkle in a bit of olive oil, salt, and pepper, mixing until the crumbs are evenly coated.

Peel the large Vidalia onions and slice them into 1/2-inch thick rounds. Keep the slices intact as you separate them into rings.

Coat each onion ring in the flour mixture, shaking off excess. Dip into the egg mixture, allowing excess to drip off, then dredge into the seasoned panko breadcrumbs, pressing gently to ensure even coating.

Preheat your air fryer to 375°F. Place the coated onion rings in the air fryer basket in a single layer. Cook for 16 to 25 minutes, flipping halfway, until golden brown and crisp.

While the onion rings are air frying, mix together the sour cream, finely chopped fresh dill, ranch powder, a splash of water, and a drizzle of olive oil in a separate bowl. Stir well until combined.

Once the onion rings are golden brown and crispy, transfer them to a wire rack to cool slightly. Serve warm alongside your creamy dip.