Preheat oven to 375 degrees F (190 degrees C). Line a baking sheet with parchment paper.

Combine flour, seasoned bread crumbs, Italian seasoning, salt, 1 1/2 teaspoons garlic powder, onion powder, chili powder, paprika, and pepper in a small, shallow bowl.

Combine milk, egg, honey, lemon juice, and 1/2 teaspoon garlic powder in a separate shallow bowl until well blended.

Dip chicken pieces first in the flour mixture to coat all sides and shake off excess. Dip into the egg mixture and back into the flour mixture. Set chicken pieces aside on a plate to rest for 10 minutes.

Pour 1 inch of peanut oil into a deep-fryer or large saucepan and heat to 375 degrees F (190 degrees C) over medium-high heat. Fry chicken a few pieces at a time, without crowding, until golden brown, 3 to 5 minutes per side. Transfer chicken to the prepared baking sheet using tongs.

Bake in the preheated oven until the chicken is no longer pink at the bone and the juices run clear, 30 to 40 minutes. An instant-read thermometer inserted near the bone should read 165 degrees F (74 degrees C).