Prep the chicken: Slice each chicken breast in half horizontally to create 4 cutlets. Pat dry with paper towels.
Season both sides with salt, pepper, garlic powder, onion powder, oregano, and red pepper flakes if using.
Set up breading station: Place flour in one shallow bowl. In a second bowl, whisk eggs with water. In a third bowl, mix breadcrumbs with Parmesan.
Bread the cutlets: Dredge each cutlet in flour, shaking off excess.
Dip in egg to coat, then press into the breadcrumb mixture until well covered. Let the breaded cutlets rest on a plate for 5 minutes to help the coating stick.
Preheat the air fryer: Heat to 380°F (193°C) for 3 minutes. Lightly spray the basket with oil to prevent sticking.
Air fry the chicken: Arrange cutlets in a single layer without overlapping.
Lightly spray the tops with oil. Cook for 6–7 minutes, flip, spray again, and cook another 4–6 minutes until internal temperature reaches 160–165°F and the crust is golden.
Add sauce and cheese: Spoon 2–3 tablespoons marinara over each cutlet. Top with mozzarella.
Air fry at 360°F for 2–3 minutes, just until the cheese melts and bubbles.
Finish and serve: Let rest 2 minutes. Garnish with fresh basil. Serve over spaghetti, alongside a green salad, or with garlicky bread.