Set up a breading station with three shallow bowls. In the first bowl, add flour. In the second bowl, whisk together eggs and milk. In the third bowl, combine panko breadcrumbs, parmesan cheese, garlic powder, smoked paprika, onion powder, salt, and pepper.
Dredge each chicken piece in flour, then dip in the egg mixture, and finally press into the breadcrumb mixture, coating all sides well.
Preheat the air fryer to 400°F (200°C) for 3 minutes. Lightly spray the basket with cooking spray.
Arrange the breaded nuggets in a single layer in the air fryer basket with a little space between each. Spray the tops lightly with cooking spray.
Cook at 400°F for 8 to 10 minutes, flipping halfway through, until golden brown and the internal temperature reaches 165°F.
Serve hot with your favorite dipping sauce.