Heat oven to 400. Mix arrowroot powder, paprika, salt, onion powder, garlic powder, and sugar in one bowl. Mix milk and egg together in another bowl. Slice onion to make rings. Peel skin from each ring and separate rings from each other. Line baking sheet with parchment paper. One at a time, dip onion in wet mix, then dry mix. Coat well and top excess into bowl. Place on baking sheet. Spray rings with olive oil spray (just coat-not too much). Flip and spray other side. Put in oven. Check after 9-10 minutes and flip over. Cook additional 4 minutes or so. Take out and serve right away.
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