Preheat the oven to 425ºF. Place a wire cooling rack, or two, over a baking sheet to hold the nuggets as they bake.
In a wide shallow bowl, combine the breadcrumbs, garlic powder, smoked paprika, salt, and some freshly cracked pepper (about 5 cranks of a pepper mill). Stir these ingredients together until evenly combined. Drizzle the oil over the breadcrumb mixture, then stir until the breadcrumbs are coated in oil. The breadcrumbs should look like damp sand.
In a separate small bowl, stir together the Greek yogurt, salt, and water until smooth. You want the yogurt to be a similar consistency to buttermilk or heavy cream. It should be thick enough to coat the chicken.
Trim any excess fat from the chicken breast, then cut it into small, ¾-1-inch pieces. For a 2/3 lb. chicken breast you should get about 22-24 pieces.
Dip each piece of chicken into the yogurt slurry, then roll it in the seasoned breadcrumb mixture until the chicken piece is fully coated. Place each coated nugget onto the wire cooling rack on the baking sheet.
Once all of the chicken pieces are fully coated, transfer the baking sheet to the oven and bake for 23-25 minutes, or until the breading is browned on the edges.
Remove the chicken nuggets from the oven and let cool for 3-5 minutes, then serve with your favorite dip.
*A neutral oil is any cooking oil that does not carry a heavy flavor. You have the flexibility here to use the oil that best fits your diet or budget. I used Grapeseed oil today, but you could use canola, light olive oil, safflower, sesame, or any other light oil.**If you have plain regular-style yogurt (not Greek style), that can be used too. You'll just need to add less water when thinning it out. ***My chicken breast weighed approximately 2/3 lb., which made me about 24 nuggets. Your yield will vary depending on the size of the breast. I've set the serving size at six nuggets per serving, assuming you'll be eating something on the side.
This recipe contains wheat and gluten (breadcrumbs), and also Dairy (Greek yogurt). To make these gluten-free, swap in your favorite gluten-free breadcrumbs — the rest of the recipe stays exactly the same. For a fully gluten-free version with tested tips, this gluten-free chicken nugget recipe is a great resource. See recipe tips block above the recipe card for dairy-free tips.