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Preheat oven to 425° F. Place an oven-safe wire rack on a rimmed baking sheet. (If you do not have an oven-safe wire rack, you can bake the chicken right on the baking sheet. See note below.) Spray the rack or baking sheet with cooking spray.
To prepare the breading on the chicken, you will need 3 wide, shallow bowls, dishes or pie plates. In one dish, place the flour. In the second dish, beat together the eggs and water. Then, to the dish with the beaten eggs, add the paprika, garlic powder, onion powder, salt and pepper and mix with a whisk or fork until well combined and no clumps of spices remain. In the third dish, place the panko bread crumbs.
Coat the chicken first in the flour, then in the egg mixture, and finally in the panko. Place chicken on the prepared baking rack/sheet.
Bake for 16-18 minutes, or until cooked through to at least 165° F and lightly browned. If desired, you can turn on the broiler during the last few minutes of cooking to help crisp the coating on the chicken even more. Serve with dipping sauces, as desired.