INSTRUCTIONS
1. In a large bowl, add the chicken and sprinkle both sides with salt and pepper.
2. In a medium bowl, whisk together the buttermilk, peppers, oil, paprika, garlic powder, and onion powder until combined. Pour the mixture over the chicken. Cover with plastic wrap and transfer to the refrigerator to marinate for at least 1 hour, but preferably overnight.
3. In a shallow dish, whisk the egg and oil together. Place the flour and panko breadcrumbs into 2 separate shallow dishes.
4. Working with 1 piece at a time, dredge chicken in flour, shaking off excess. Then dip in egg mixture, letting excess drip back into the bowl. Dredge in panko and place on a baking sheet.
5. Fit a Dutch oven with a thermometer and pour in oil about 3 inches high. Heat over medium-high heat until the thermometer registers 325°F.
6. Working in 3 batches and returning oil to 325°F between batches, fry chicken, turning occasionally, until panko is deep golden brown and crisp. An instant-read thermometer inserted into thickest part of the chicken pieces should register 160°F for white meat and 165°F for dark. This should take about 15-18 minutes.
7. Transfer cooked chicken to a clean wire rack set inside a baking sheet. Let oil cool slightly.
8. Meanwhile, in a small sauce pan, heat honey, oil, and peppers over medium heat. Bring to a boil and then simmer for 10 minutes, stirring occasionally.
9. Drizzle sauce over chicken and serve.