Combine dipping sauce ingredients. Set aside.
Cut chicken into roughly 1" pieces and place in zippered bag with pickle juice to marinate in the refrigerator for at least 4 hours.
Whisk together milk and egg in a large bowl.
Drain pickle juice from chicken and add the chicken to the egg mixture.
Toss chicken to ensure all pieces are coated with the egg.
Drain excess egg mixture.
In a heavy skillet, heat oil over medium heat to about 375.
In a zippered bag, combine flour, powdered sugar, paprika, salt and pepper. Shake well to mix.
Add chicken to zippered bag and shake to coat.
Cook chicken pieces in oil until crispy and browned (about 3 to 4 minutes).
Drain cooked on paper towels.
Serve with the dipping sauce