Prepare the breading station: In one shallow bowl, combine flour, paprika, garlic powder, salt, and black pepper. In a second bowl, whisk together eggs and water until smooth. In a third bowl, mix panko breadcrumbs with Parmesan if using. This setup makes it easy to coat the fillets evenly for maximum crispiness.
Coat the fish: Pat the fish fillets dry with paper towels to remove excess moisture. Dredge each fillet first in the seasoned flour, shaking off the excess. Then dip into the egg mixture, making sure it’s fully coated. Finally, press the fillet into the panko breadcrumbs, covering all sides evenly.
Preheat the air fryer: Preheat your air fryer to 400°F (200°C) for 3–5 minutes. Lightly spray the basket with cooking spray or brush with a little oil to prevent sticking.
Air fry the fillets: Place the coated fillets in a single layer in the air fryer basket. Make sure they don’t overlap, so each fillet cooks evenly. Lightly spray the tops with cooking spray. Cook for 10–12 minutes, flipping halfway through, until the fish is golden brown, crispy on the outside, and flakes easily with a fork.
Serve: Carefully remove the fillets and place them on a serving plate. Serve immediately with lemon wedges, tartar sauce, or a fresh side salad. The crispy coating stays crunchy while the fish inside remains tender and juicy.