Preheat oven to 425 degrees.
Fit a large, rimmed sheet pan with parchment. Reserve.
In a large bowl or pie plate, mix the flour, salt and pepper together.
In a second bowl whisk together the egg, water, and hot sauce.
In a third bowl whisk together panko, cheddar, and both types of paprika.
Dredge the chicken through the flour, shaking off excess. Dredge it through the egg mixture, shaking off excess. Finally, dredge the chicken through the panko mixture, patting to make sure all sides are covered.
Place on the prepared sheet pan. Repeat with the rest of the chicken.
Drizzle with melted butter.