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Place two cooling racks over two rimmed baking sheets. Set aside.
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Slice the onions into 1/2" thick slices and separate into rings. Add to a bowl with 1/2 cup of flour and coat them. Seet aside.
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In a large bowl, mix the remaining flour with the cornstarch, garlic powder, onion powder, cayenne, sugar, smoked paprika, and salt.
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Whisk together the beer, sparkling water, and egg in another large bowl and gradually whisk in the dry ingredients.
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In a large wok or deep fryer heat oil to 350 degrees F.
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Work in batches and don't crowd the onions.
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Dip the onion rings into the batter to coat, and then drop them into the oil.
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Cook the onion rings until golden brown, turning as needed. Place the fried onion rings onto the prepared cooling rancks on top of baking sheets.
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If making ahead to freeze let cool at this point or place in the oven to keep warm while you finish making the rest.
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Serve with your favorite sauce.