Preheat oven to 425°F. Line a baking sheet with parchment paper and top with an oven safe wire rack. Spray the wire rack lightly with an oil mister or non-stick spray.
Cut the tough ends off of the asparagus and cut spears in half.
In a shallow bowl, mix together the parmesan, panko bread crumbs, salt, pepper, and Italian seasoning. In a second bowl, whisk the eggs and one tablespoon of water with a fork. Place coconut flour into a third bowl.
Dredge the asparagus spears in the coconut flour, then in the egg mixture, then in the panko mixture, evenly coating the asparagus with the bread crumbs. Place the coated asparagus onto the prepared wire rack. For extra crispy fries, spray the asparagus with oil before baking.
Bake for 10-12 minutes, or until the asparagus is tender and golden brown.
While the asparagus is baking, stir together the yogurt, lemon juice, dill, and salt and pepper. Serve the asparagus fries with dipping sauce.