In a large bowl, add the bread and pour the milk on top. Let it absorb for 2-3 minutes.
Add the garlic powder, onion powder, salt, pepper and paprika and combine with your hands. This is called a panade and helps to keep the chicken nuggets juicy.
Next, add the ground chicken and parmesan cheese to the bowl. Knead the bread, spices and parmesan into the ground chicken. Mix until just combined; don't overmix.
Form mixture into small nuggets (about a tablespoon each) and set aside on a large plate or baking sheet.
Combine the breading mix in a shallow bowl and set aside.
Brush each side of the nuggets with the whisked egg. Transfer them to the breading mixture and generously coat each one until completely covered. Place back on the baking sheet or plate.
Preheat your air fryer to 400 degrees F.
Place chicken nuggets in air fryer, leaving space between each one for the hot air to circulate. For a crunchier texture, lightly spray the nuggets with olive oil or cooking spray.
Cook for 8-9 minutes, flipping halfway through. Serve warm with your favorite dipping sauce.