Al wrote:

1. Is there any way to remove absorbed oil in fried foods after they
are fried? Using paper towels helps a bit but it's not enough. Is
there some kind of process or product that can say 'aerate' the fried
foods and take away most of the oil absorbed by the fried food? How do
the commerical guys do it - e.g. potato chips are never greasy, frozen
fried food is low in the bad fats

There shouldn't be much oil obsorbed if you do the frying properly.
The way to properly fry depends on the food you are frying, but usually,
the best way to reduce oil obsobsion is to fry hot and fast, but not
hot enough that your oil smokes.

A related question
2. Can mixing water and oil help in reducing oil absorbed by the food
to be fried.

No! Adding water to hot oil will cause spattering. The water will steam
off and it can burn you.

I feel if we have a easy process of removing absorbed oil in fried
foods, then it would be one more best practice to reduce substantially
the amount of oil consumed and hence have a lesser health impact...

The best practice, from a health standpoint, is to eat deep fried
foods only ocassionally. As an alternative to feep frying, you can
try oven frying. You simply put the food in a baking dish, then
spray it with non-stick spray or drizzle with your favorite oil
and bake until its done.