Pat the chicken pieces dry with a paper towel before you do anything else, since excess moisture keeps the coating from crisping properly. Cut the chicken into even, bite-sized cubes so they cook at the same rate. Season the pieces lightly with salt and pepper before they even touch the flour.
Lay out three shallow dishes: one with seasoned flour, one with the beaten eggs, and one with the panko mixed with garlic powder, onion powder, and paprika. Dip each chicken piece into the flour first, then the egg, then press it firmly into the panko. This three-step order is what gives the nuggets that thick, crispy shell.
Heat about half an inch of oil in a skillet over medium heat until it shimmers but doesn't smoke. Fry the nuggets in small batches so the pan isn't crowded, turning them every couple of minutes until golden brown on all sides. This usually takes around 6 to 8 minutes total per batch, depending on piece size.
Move the finished nuggets straight onto a wire rack instead of a paper towel, since paper towels trap steam and soften the crust. Let them rest for a minute or two while you finish the remaining batches. This short rest also lets the internal temperature settle before checking doneness.
In a small saucepan over low heat, melt the butter and stir in the minced garlic until fragrant, about 30 seconds. Add the honey, soy sauce, and red pepper flakes, then simmer gently for two to three minutes until the mixture thickens slightly and turns glossy.
Add the fried nuggets directly into the saucepan, or transfer the sauce into a large bowl and toss the nuggets in it. Work quickly and gently so the crispy coating stays mostly intact while still getting fully coated in the glaze. Serve immediately while the sauce is still warm and sticky.