Initial Thaw: Microwave the frozen pearl onions for half the time suggested on the package (approximately 2 minutes) to soften them slightly.
Station Setup: While the onions microwave, beat the egg in one medium bowl. In a separate bowl, stir together the flour, paprika, salt, black pepper, cayenne, and garlic powder.
Drain and Dry: Drain the partially cooked onions in a colander and thoroughly pat them dry with paper towels.
First Flour Coating: Working with 6 onions at a time, toss them in the flour mixture to coat. Use a fork to lift them out, shaking off any excess.
Egg Wash: Place the floured onions into the egg mixture and stir to coat completely.
Double Dredge: Use a clean fork to lift the onions from the egg, letting excess drip off, then return them to the flour for a second, thicker coating. Repeat until all onions are breaded.
The "Stick" Chill: Place the breaded onions on a tray and refrigerate for 10 minutes; this ensures the coating stays on in the air fryer.
Preheat: Set your air fryer to 380°F (190°C) and preheat for 3 minutes.
First Fry: Arrange the onions in the basket in a single layer. Mist them with oil and air fry at 380°F (190°C) for 3 minutes.
The Final Crisp: Shake the basket, apply another light spray of oil, and air fry for an additional 3 minutes until golden and crunchy.