Prep the chicken: Slice each chicken breast horizontally to make 2 thinner cutlets. Place between two sheets of parchment and gently pound to an even thickness, about 1/2 inch.
Pat dry with paper towels.
Season: In a small bowl, mix salt, pepper, garlic powder, onion powder, and oregano. Sprinkle evenly over both sides of the chicken.
Set up the dredging station: Place the flour in one shallow bowl. In a second bowl, whisk the eggs with the water.
In a third bowl, combine panko, Parmesan, and paprika.
Coat the chicken: Dredge each cutlet lightly in flour, shaking off excess. Dip in the egg mixture, letting extra drip off. Press into the panko mixture, coating both sides.
Set on a plate.
Preheat the air fryer: Heat your air fryer to 380°F (193°C) for 3 to 5 minutes. Lightly spray the basket with oil.
Air fry the chicken: Arrange cutlets in a single layer with space between them. Lightly spray tops with oil.
Cook for 6 to 7 minutes, flip, spray again, and cook another 5 to 6 minutes until golden and the internal temperature reaches 165°F (74°C).
Add sauce and cheese: Spoon 1 to 2 tablespoons marinara over each cutlet. Top with mozzarella. Air fry at 360°F (182°C) for 2 to 3 minutes until the cheese melts and bubbles.
Finish and serve: Sprinkle with extra Parmesan, basil, and a pinch of red pepper flakes if you like.
Serve immediately over cooked spaghetti, on a toasted roll, or with roasted vegetables.