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In a blender, blend honey, chiles, ketchup, vinegar, and ¼ cup water until smooth and bright red.
Transfer sauce to a small pot. Bring to a boil over medium heat and cook, whisking occasionally, until reduced by one-third, 2 to 3 minutes. Let cool.
Season chicken with salt and pepper. Place flour in a shallow bowl. Lightly dredge chicken in flour. Transfer to a wire rack set in a baking sheet and let rest 5 minutes.
Meanwhile, add cornstarch, baking powder, garlic powder, and paprika to remaining flour; season with salt and pepper and whisk until combined. Into a second shallow bowl, pour buttermilk. Add 1 tablespoon flour mixture to buttermilk and whisk until combined.
Dip chicken into buttermilk mixture, then dredge in flour mixture, shaking off excess.
In a large, high-sided skillet fitted with a deep-fry thermometer, over medium-high heat, heat oil until thermometer registers 350°.
Working in batches, fry chicken, turning halfway through, until golden brown and a crispy crust forms, 2 to 3 minutes per side. Return chicken to wire rack.
In a large bowl, toss chicken with sauce until coated. Divide chicken among plates or transfer to a platter. Serve with fries and ranch dressing alongside (if using).