In a large mixing bowl, combine the all-purpose flour, chili powder, kosher salt, black pepper, and paprika. Mix well to ensure the spices are evenly distributed.
In another bowl, whisk together the egg and milk until fully combined. This will help the panko breadcrumbs stick to the chicken.
Take each chicken tender (or strip) and first dip it into the flour mixture, shaking off any excess. Next, dip it in the egg mixture, and finally coat it with the panko breadcrumbs, pressing lightly to ensure they adhere well. Repeat this for all chicken pieces.
Preheat your oven to 400°F (200°C). Line a baking sheet with parchment paper. In a large skillet over medium heat, add the olive oil and butter. Once hot, place the coated chicken tenders on the sheet and drizzle with the remaining oil. Bake for 20-25 minutes or until the chicken is golden brown and cooked through, flipping halfway through.
While the chicken is baking, whisk together honey and the juice of one lime in a small bowl. Adjust the lime juice to your taste, adding more if you prefer a tangier flavor.
Once the chicken is cooked, remove it from the oven. Drizzle the honey lime sauce over the chicken or serve it on the side for dipping. Garnish with lime wedges for an extra burst of flavor.