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In a small-medium sauce pan, combine the 1 cup of water, sriracha, soy sauce, garlic, sugar, and honey and stir. Bring mixture to a boil over medium heat.
Whisk together the 2 tablespoons corn starch and remaining 2 tablespoons of water until dissolved. Add to sauce pan and stir until thickened. Reduce heat to low.
Add diced chicken and 1/3 cup corn starch to a large plastic bag. Seal the bag and shake to coat chicken. Drizzle a large pan or skillet with oil over medium heat. Add chicken and sauté until browned and chicken is cooked through.
Add the sauce and stir to coat. Sprinkle with crushed pepper flakes if desired and serve over warm rice.