In a large bowl, combine ground chicken, 1/2 cup panko, Parmesan, garlic powder, onion powder, salt, pepper, and beaten egg. Mix gently with your hands just until combined - do not overwork or the nuggets will be tough.

With damp hands, scoop about 2 tablespoons of mixture and form into a flat, oval nugget about 1/2 inch thick. Place on a plate or baking sheet. Repeat with remaining mixture to make 16-18 nuggets.

Spread extra panko on a shallow plate. Press each nugget lightly into the panko to coat both sides. Shake off excess and return to the baking sheet.

Preheat air fryer to 400°F. Working in batches, arrange nuggets in a single layer with space between them. Spray lightly with olive oil. Cook 6 minutes, flip carefully, spray again, and cook 5-6 minutes more until deeply golden and internal temperature reaches 165°F.

Let rest 2 minutes before serving - they crisp up slightly as they cool. Serve with your favorite dipping sauce.