Marinate: Cut the chicken into 1.5 inch pieces and place in a bowl or ziplock bag with the pickle juice and marinate for 30 minutes.
Make Breading: Add flour, powdered sugar, paprika, black pepper, chili powder, salt, and baking powder to a ziplock bag.
Add milk, and egg to a separate bowl and mix together. Preheat air fryer to 360 degrees.
Coat the Chicken: Remove chicken from pickle marinade and add to the bowl with the egg mixture. Spoon out the pieces (letting any excess egg mixture to drip off) and place them in the ziplock bag with the dry seasonings. Seal and shake bag to evenly coat all of the chicken.
Cook: Spray the bottom of the fry basket with nonstick cooking spray and place half of the chicken pieces into a single layer in the bottom of the basket, spacing them out so they don't stick together. Generously spray the top of each piece of chicken with cooking spray.
Air Fry at 360 for 6 minutes. Open air fryer, flip chicken pieces to the other side, and spray tops again with cooking spray. Increase air fryer temperature to 400 degrees and cook for 2 more minutes, or until crisp and cooked through. (Exact cooking time will vary depending on the size of your nuggets, your air fryer, etc.)
