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Spray a fryer basket lightly with olive oil.
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In a bowl, mix 1 teaspoon of Old Bay seasoning, garlic powder, and onion powder. Add the shrimp and toss with the seasoning mix to lightly coat.
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In a separate small bowl whisk the eggs with 1 teaspoon water.
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In a shallow bowl, mix the remaining 1 teaspoon Old Bay seasoning and the panko bread crumbs.
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Dip each shrimp in the egg mixture and dredge in the bread crumb mixture to evenly coat.
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Place the shrimp in the fryer basket, in a single layer. Lightly spray the shrimp with oil. You may need to cook the shrimp in batches.
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Air fry until the shrimp is cooked through and crispy, 10 to 15 minutes, shaking the basket at 5-minute intervals to redistribute and evenly cook.