Slice each chicken breast in half lengthwise, then cut into uniform 1½ x 1½ x ½-inch chunks so they cook evenly.
In a small bowl, whisk together the egg, milk, and honey until combined.
In a separate bowl, mix the breadcrumbs, seasoned salt, ground black pepper, garlic powder, Italian seasoning, and dried parsley.
Dip each chicken piece into the egg mixture, then coat thoroughly in the breadcrumb mixture; place breaded pieces on a plate until ready to fry.
Pour canola oil into a large skillet to a depth of about 1 inch and heat over medium-high until hot but not smoking.
Fry the chicken in small batches without crowding the pan; cook each batch about 3 minutes on the first side, then flip and cook about 2 more minutes until the chicken is no longer pink and reaches 165°F internally.
Remove cooked nuggets with tongs and drain on a plate lined with paper towels; repeat with remaining chicken, letting oil return to temperature between batches.
Serve immediately with your favorite dipping sauce.
Oven alternative: place breaded nuggets on a sheet pan, brush with oil, and bake at 400°F for 20 minutes.
Air fryer alternative: cook breaded nuggets at 380°F for 7 minutes, flip, then cook 7 more minutes.