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Step 1
Preheat oven to 400 degrees F (205 degrees C). Lightly grease a 9x13-inch baking dish.
Step 2
Beat egg, water, salt, and pepper in a shallow bowl. Set 2 tablespoons bread crumbs aside; pour remaining bread crumbs into a large resealable plastic bag. Dip chicken in egg mixture, then place in bag and shake to coat.
Step 3
Heat 2 tablespoons olive oil in a large skillet over medium heat. Cook chicken in skillet until browned, 2 to 3 minutes per side. Remove chicken from pan. Add remaining 2 tablespoons oil to skillet; cook and stir zucchini and garlic over medium heat until zucchini is slightly tender, about 2 minutes. Transfer to prepared baking dish.
Step 4
Sprinkle 2 tablespoons reserved bread crumbs over zucchini. Top with tomato slices, 2/3 cup mozzarella cheese, and basil. Place chicken on top of zucchini layer. Cover baking dish with aluminum foil.
Step 5
Bake in preheated oven until chicken is no longer pink in the center and juices run clear, about 25 minutes. An instant-read thermometer inserted into the center should read at least 165 degrees F (74 degrees C). Uncover and sprinkle with remaining mozzarella cheese. Bake until cheese is melted, about 5 minutes.