Preheat the air fryer to 400ºF/200℃ for 4 minutes. Place the cubed chicken in a mixing bowl and add salt, pepper, smoked paprika, garlic powder, and sugar. Use a spoon to mix well. In a separate bowl, beat the egg. Add the seasoned chicken to the egg and toss well until the chicken is fully coated.
Pour the panko breadcrumbs onto a large plate. Dredge each piece of chicken, one by one, in the breadcrumbs. Working in batches, place the chicken bites in the air fryer, being sure that they’re not touching each other. Spray the bites with the oil spray.
Air fry the chicken bites for 7 minutes at 400℉/200℃, shaking halfway through or turning with tongs, until they’re golden brown and fully cooked. Immediately season the bites with another sprinkle of salt. Keep them warm in a 200ºF oven if working in batches.
An air fryer will cook these faster than a convection oven or traditional oven. Use a meat thermometer to make sure the chicken comes to an internal temperature of 165 degrees Fahrenheit.
Traditional oven instructions - Preheat to 400F/200C and place on a sheet pan with parchment paper. Bake for about 15-17 minutes, or until fully cooked through and light brown.