Butterfly the chicken. Cut each chicken breast in half widthwise all the way through — you'll end up with 4 thinner cutlets from 2 breasts. If any pieces are uneven thickness, pound them gently with the flat side of a mallet or heavy pan. Even thickness = even cooking.
Set up the coating. In a shallow bowl, combine the panko, grated parmesan, garlic powder, onion powder, Italian seasoning, salt, and pepper. Mix well. In a second shallow bowl, beat the 2 eggs.
Optional but worth it — toast the panko first. In a dry skillet over medium heat, toast the panko for 2–3 minutes, stirring constantly, until it turns light golden. Then mix in the parmesan and seasonings. Toasted panko goes into the air fryer already golden, which means it comes out crispier and more evenly browned. Adds 3 minutes and makes a noticeable difference.
Coat the chicken. Dip each cutlet in the beaten egg, let the excess drip off, then press it into the panko-parmesan mixture on both sides. Press firmly — you want the coating actually adhered, not just sitting on top.
Air fry at 375°F. Spray the air fryer basket with cooking spray. Lay the coated cutlets in a single layer — don't overlap. Spray the tops lightly. Cook at 375°F for 7–8 minutes, until the crust is golden.
Sauce and cheese. Flip the cutlets. Spoon marinara sauce over each one, then top with shredded mozzarella. Cook for another 3–4 minutes until the cheese is melted and bubbling and the chicken reads 165°F at the thickest part.
Step 6 — Serve immediately. Chicken parmesan is best eaten straight from the air fryer while the crust is still crispy underneath the sauce. Garnish with fresh basil if you have it and a little extra grated parmesan on top.