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Heat oil in deep fryer or large pan on stove to 325°F.
In a large bowl, whisk together flour, baking powder, baking soda, salt, pepper, and garlic powder.
In another bowl, whisk together buttermilk, egg, and hot sauce.
Dredge chicken in flour, then in the egg mixture, and again in flour. Press flour in well.
Fry chicken 3–5 minutes per side until golden. Drain on paper towels.
For gravy, heat ¼ cup oil in a pan. Stir in flour until absorbed.
Whisk in milk slowly, stirring until thickened. Add salt and pepper to taste.
Pour gravy over chicken and serve hot.