In a small bowl, combine flour, baking powder, salt, pepper and seafood seasoning, set aside. Drain clams, reserving 2 tablespoons clam juice; set clams aside.

Beat egg, milk, and reserved clam juice in a small bowl. Stir into dry ingredients just until moistened. Add the clams and dry onion soup mix.

In an deep cast-iron skillet or deep fat fryer, heat oil to 375º

Drop batter by tablespoonfuls into hot oil. Fry for 2 to 3 minutes, turning occasionally, until golden brown. Drain on paper towels and serve with Spicy Cocktail Sauce.

Make Spicy Cocktail Sauce: In a medium saucepan combine; water and finely chopped yellow onion. Cook covered for 5 minutes or until onion is tender. Drain. Stir in bottled chili sauce, ketchup, drained prepared horseradish, lemon juice, Worcestershire sauce, dry mustard, and ground red pepper. Bring to a boil, lower heat and simmer uncovered 2 minutes. Transfer to a small bowl. Cool. Cover and refrigerate for at least 2 hours. Sauce will keep for a week. Makes about 1 cup.