Heat peanut oil in a deep, heavy skillet over medium heat or a deep-fryer.
Mix flour, onion powder, and paprika together in shallow bowl. Whisk milk and egg together in a separate shallow bowl.
Dip chicken pieces in flour mixture until evenly coated, shaking off excess. Dip coated chicken in the milk mixture, allowing excess to drip back into bowl; roll again in the flour mixture until coated.
Working in batches, place chicken in the hot oil and cover skillet; cook until chicken is browned and no longer pink and the center, about 7 minutes per side. An instant-read thermometer inserted near the bone should read 165 degrees F (74 degrees C).