Preheat your oven to 400 °F (about 200 °C) and line a rimmed baking sheet with parchment paper. This ensures even baking and helps the underside crisp without sticking.
Take each chicken breast and place between plastic wrap or in a resealable bag. Gently pound it to about ¼-inch thickness so it cooks evenly. Then rub every piece with olive oil, Italian seasoning, salt, and pepper.
If time allows, cover and refrigerate for 1 hour up to overnight. Marinating gives the flavors a chance to sink in and helps the meat stay moist during baking.
In one shallow dish, whisk together egg, milk, salt, and pepper. In another, mix panko, garlic powder, smoked paprika, and the freshly grated Parmesan.
Dip each seasoned chicken piece into the egg wash, letting any excess drip off. Then press both sides into the breadcrumb mixture, ensuring it sticks well.
Arrange the coated cutlets on the prepared baking sheet. Lightly spray their tops with oil spray. Bake for 15 minutes, then flip each one and bake for an additional 5–8 minutes or until golden and fully cooked. Use a thermometer to check for 165 °F internal temperature.
Once they are done, sprinkle fresh chopped parsley over the cutlets. Let them rest briefly before serving so the coating stays crisp.