Cut the chicken breasts into approximately 1-inch pieces so the nuggets cook evenly. Season the chicken with 1 teaspoon kosher salt and a little freshly cracked black pepper.
In a wide, shallow bowl, combine 1½ cups flour, 2 teaspoons garlic powder, 2 teaspoons sugar, ¼ teaspoon cayenne pepper, 1 teaspoon paprika, 3 teaspoons salt, and ½ teaspoon black pepper.
In a second shallow bowl, beat together the egg and buttermilk. Whisk in the remaining ¾ cup flour, 1 teaspoon garlic powder, 1 teaspoon sugar, ½ teaspoon paprika, ¼ teaspoon cayenne, ½ teaspoon salt, ¼ teaspoon black pepper, and baking soda.
Add the chicken pieces to the buttermilk mixture and toss until thoroughly coated.
Set a wire cooling rack inside a rimmed baking sheet. Add enough frying oil to a large, heavy-bottomed pot for deep frying and attach a suitable frying thermometer.
Heat the oil to 325°F (163°C). Maintain the temperature as consistently as possible while cooking.
Working one piece at a time, lift the chicken from the wet mixture and allow the excess batter to drip back into the bowl. Transfer it to the seasoned flour mixture and press the coating firmly around the chicken.
Carefully lower the breaded chicken into the hot oil in small batches. Avoid overcrowding the pot, which can lower the oil temperature and make the coating greasy.
Fry the Hot Honey Chicken Nuggets for approximately 3–4 minutes, turning as needed, until deeply golden and crisp. Chicken must reach an internal temperature of 165°F (74°C).
Use a metal slotted spoon or spider strainer to transfer the cooked nuggets to the prepared wire rack. Allow the frying oil to return to 325°F before adding another batch.
While the nuggets cook, melt the salted butter in a small saucepan over medium-low heat.
Add the honey and Sriracha. Whisk gently until the ingredients form a smooth, glossy hot honey sauce. Keep warm over very low heat without allowing the sauce to scorch.
Transfer the crispy nuggets to a serving platter. Drizzle with the warm sauce for sticky nuggets, or serve the sauce separately for dipping to preserve maximum crunch.