Cut the chicken breasts into bite size nuggets.

Beat the egg with water in a small bowl.

In another bowl add the panko bread crumbs, grated parmesan cheese, and dry ranch seasoning. Stir until evenly mixed.

Line a baking sheet with parchment paper or foil and set a wire baking rack over top. Dip each chicken nugget into the egg and then into the panko mixture, pressing the crumbs into the chicken so it sticks. Place the chicken nuggets onto the wire baking rack. Sprinkle with kosher salt and pepper.

Note: If you don't have a wire baking rack, place chicken directly onto the lined baking sheet.

Bake in a 400 degree oven for 25 minutes. Serve with ranch dressing and/or ketchup if desired.