In a food processor, add the breadcrumbs and process until very fine.
In a large ziplock bag or a bowl add the chicken pieces, the milk and the eggs and combine. (I usually just close the bag and squish it together)
Put the chicken in the fridge for 15-20 minutes.
In a large dutch oven fill it 3 inches deep with peanut oil and heat to 365-375 degrees (medium high heat until a piece dropped in immediately bubbles up but doesn’t burn quickly).
Put the breadcrumbs, flour, powdered sugar, Kosher salt, white pepper, chili powder in a bowl and whisk together.
Dredge the chicken pieces in the flour mixture and let dry for a few minutes.
Fry in batches (avoid crowding them) until golden brown (2-3 minutes) and remove to a sheet pan.
Don’t drain on paper towels, it’ll create steam and soften the nuggets.