How to Make It
Preheat oven to 400°F. Combine flour, salt, and pepper in a shallow dish. Whisk together eggs and water in a second shallow dish. Place crushed chips in third dish.
Dredge chicken lightly in flour, then dip in egg mixture, allowing excess to drip off. Coat chicken in chip crumbs, gently pressing to adhere.
Heat 2 tablespoons of the oil in a large nonstick cast-iron skillet over medium-high. Cook 2 chicken breasts at a time until golden brown, 2 minutes on each side (chicken will not be cooked through). Transfer to a wire rack set inside a baking sheet. Repeat with remaining oil and chicken.
Arrange chicken down the middle of a baking dish, slightly overlapping. Pour sauce over center of chicken. Top with mozzarella and Parmesan, and bake in preheated oven until golden, bubbly and cooked through, about 15 minutes. Sprinkle with basil.