Adjust oven rack to middle position, and preheat oven to 475 degrees F.
Combine the breadcrumbs and the oil in a 12-inch skillet and toast over medium heat until golden, stirring often, about 10 minutes. Spread the breadcrumbs in a shallow dish and allow to cool slightly; when cool, stir in the Parmesan.
In a second shallow dish, combine the flour, garlic powder, 1 tablespoon salt, and 1/2 teaspoon pepper together.
In third shallow dish whisk together the egg and water.
Line a rimmed baking sheet with foil and top with a wire baking rack. Spray the rack with vegetable oil spray. Pat the chicken dry with paper towels, then season with salt and pepper.
Lightly dredge each chicken piece in the flour to coat completely, shaking off the excess. Then dip into the egg mixture and finally coat with the breadcrumb mixture. Press on the breadcrumbs to make sure they adhere. Place the chicken pieces on the prepared baking rack.
Bake until the chicken is no longer pink and feels firm when pressed with a finger, about 15 minutes, or until the chicken reaches at least 165 degrees F with an instant read thermometer.
Remove the chicken from the oven. Spoon 2 tablespoons of marinara sauce over the top of each piece of chicken and top with 2 tablespoons of the shredded mozzarella. Return the chicken to the oven and continue to bake until the cheese is melted, about 5 minutes. Sprinkle with the fresh basil and serve as desired.