Cut onion into 1-in. wedges and separate into pieces. In a shallow bowl, combine the flour, paprika, garlic powder, cayenne and pepper.
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For batter, in another shallow bowl, combine the flour, cornstarch, garlic powder, paprika, salt and pepper. Stir in beer. Dip onions into flour mixture, then into batter and again into flour mixture. In an electric skillet or deep-fat fryer, heat oil to 375°. Fry onions, a few at a time, for 1-2 minutes on each side or until golden brown. Drain on paper towels. In a small bowl, combine the sauce ingredients. Serve with onions.
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