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Start the Traeger on Smoke with the lid open until the fire is established (4 to 5 minutes). Preheat to High heat, lid closed, for 10 to 15 minutes.
Spread the panko breading out on a parchment lined sheet and toast on the Traeger until golden brown, about 5 minutes. Let the panko cool and then mix with the rest of the breading ingredients in a shallow bowl or dish.
Whisk together eggs and water in a shallow bowl.
Put the flour in a separate shallow bowl and arrange the flour, egg, and panko breading dishes on the counter to prep the asparagus breading.
Roll each spear of asparagus in the flour first, then the egg mix, and lastly the panko bread crumb mixture. Cover the entire spear on all sides.
Lay breaded spears onto a large baking sheet covered with parchment paper. Place the baking pan on the Traeger and cook the asparagus on High 15 to 20 minutes or until the asparagus is golden brown and cooked to a tender crispness.
Turn the asparagus spears over halfway through the cooking time to brown the other side.
Balsamic Mayo: Reduce the balsamic vinegar in a saucepan on the stove top over medium heat until the vinegar gets thick and syrupy, about 10 to 15 minutes.
In a small bowl, stir together the reduced vinegar, mayo, black pepper and pinch of salt (to taste).
Serve balsamic mayo with the warm asparagus fries. Enjoy!