I ran a quick taste test with friends while I was developing this batter, and the vote for more bacon was unanimous. These onion rings get their bacon flavor from bits mixed right into the batter, not wrapped around the outside, so every bite tastes smoky, not just the edges. I round it out with a five-minute homemade bacon ranch dip, and the whole plate disappears fast at Father's Day cookouts and game day spreads.
Preheat oil in a pot, over medium heat, until it's 350℉.
Peel and slice whole onion to create rings. Peel off the little, clear membrane that is in between the onion rings.
In a medium mixing bowl whisk milk, bacon drippings, flour, baking powder, paprika and salt together until smooth.
Crumble crispy bacon strips and then mince them as finely as possible with a knife. Add minced bacon bits into the batter and mix until evenly incorporated.
Dip a few onion rings into the batter, covering it completely, and gently add them to the heated oil, once at a time. Cook onion rings in batches until deep golden. You will want to cook over medium heat that way batter doesn't get dark too fast, leaving you with a raw onion inside. Cooking it on medium heat for a longer period of time will cook the onion inside.
For dipping sauce: whisk all ingredients together in a small bowl, until all incorporated. Make sure to use the same method for mincing bacon as you did for onion rings.