Slice chicken lengthwise or pound between sheets of wax paper to ½” thickness. Pour flour into a shallow bowl and set aside. Whisk egg and water together in a shallow bowl and set aside. Place bread crumbs in a shallow bowl and set aside. Place chicken breasts in flour and coat both sides. Dip coated chicken breast into egg mixture and then into bread crumb bowl, coating both sides.
Heat oil in a heavy-bottomed skillet and fry chicken breasts until golden brown on both sides (about 2 minutes on each side). Remove to a baking pan lined with parchment. Season with salt and pepper. Top each chicken breast with a few Tbsp of sauce and then cover with a slice of cheese.
Bake for 20-25 minutes or until internal temperature of the chicken reaches 160°F.