Marinate the Chicken: In a bowl, mix milk, egg, and pickle juice. Add chicken pieces and marinate for 30 minutes (or up to 2 hours for best results).
Prepare the Coating: In a separate bowl, combine flour, powdered sugar, paprika, salt, and pepper.
Coat the Chicken: Remove chicken from marinade. Dip each piece into the flour mixture, then back into the marinade, and again into the flour for a double coating.
Fry the Nuggets: Heat oil to 350°F. Fry the nuggets in batches for 3-4 minutes per side or until golden brown.
Drain and Serve: Drain on paper towels and serve hot with your favorite dipping sauces.