Almost-Famous Hushpuppies

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1/3 cup minced onion

1 1/2 cups all-purpose flour

1/2 cup yellow cornmeal

1 teaspoon baking powder

1 1/2 teaspoons kosher salt, plus more for sprinkling

1 1/2 teaspoons sugar

2 teaspoons onion powder

1 large egg

1 cup whole milk

Vegetable oil, for frying