Split banana peppers and remove seeds.

In one bowl, whisk together milk, eggs and beer. In second bowl, add 1 cup flour. In a third bowl, combine panko crumbs and remaining flour. Dip peppers into milk mixture, then dip into flour. Place in a single layer on waxed paper and let stand 10 minutes. Dip peppers again into milk and coat with panko crumb mixture. Place peppers in a single layer on baking sheets, then place baking sheets in refrigerator for 15 minutes. Preheat oil for deep fat frying. Drop peppers into hot oil and fry 5-8 minutes until medium browned. Drain on paper towels and serve warm. Provide ranch dressing for dipping if desired.