Cut the chicken breasts into bite-sized pieces.
In a shallow dish, blend together the flour, salt, and black pepper.
In another small dish, add milk and beat the egg into the milk until well combined.
Place the Panko bread crumbs into another shallow dish.
Dredge chicken into the seasoned flour, shake off excess flour, then dip chicken into the milk and egg wash.
Dredge chicken with Panko breadcrumbs.
Place chicken nuggets onto a wire rack and let rest for a couple of minutes before frying.
Heat oil to 350 degrees.
When the oil is hot, fry several pieces at once, do not overcrowd the pan.
Drain chicken nuggets on a wire rack.