Start by placing the chicken breasts between two pieces of plastic wrap or parchment paper. Using a meat mallet or rolling pin, gently pound the chicken to an even thickness, about 1/2 inch. This ensures even cooking and tenderness.
In a mixing bowl, whisk together the eggs, minced garlic, chopped parsley, and 1/4 teaspoon salt. In another bowl, combine the Panko breadcrumbs, Italian breadcrumbs, grated Parmesan cheese, garlic powder, and onion powder. Mix well.
Dip each chicken fillet into the egg mixture, allowing the excess to drip off. Then, coat the chicken in the breadcrumb mixture, pressing down to adhere the crumbs well. Repeat this for all fillets.
In a large skillet, heat 1/2 cup of olive oil over medium heat. Once hot, carefully add the chicken fillets, cooking in batches if necessary. Fry for about 4-5 minutes on each side or until golden brown and crispy. Remove from the skillet and place on a paper towel-lined plate to absorb excess oil.
In the same skillet, add 1 tablespoon of olive oil and the chopped onion. Cook until softened, about 3-4 minutes. Add the minced garlic and cook for another minute until fragrant. Stir in the tomato puree, salt, black pepper, dried Italian herbs, and sugar (if using). Allow the sauce to simmer for about 10 minutes, stirring occasionally.
Preheat your oven to 400°F (200°C). In a baking dish, spread a layer of the tomato sauce on the bottom. Place the fried chicken on top, then drizzle more sauce over each piece. Top with sliced or shredded mozzarella cheese and finish with a sprinkle of fresh shredded Parmesan cheese.
Bake in the preheated oven for about 15-20 minutes, or until the cheese is bubbly and golden. Remove from the oven and let it rest for a few minutes before serving.