Combine the flour, cornstarch, salt, pepper, chili powder and paprika in a large zippered bag and shake well to mix.
In a separate bowl, whisk together the milk, water.
Fill a heavy skillet with oil to about 1″ and heat to about 310F. If using a deep-fat fryer, set it to 325F.
Place a few chicken pieces in the bag with the flour mixture and shake to coat. Place coated pieces on a baking sheet lined with parchment paper. Repeat with the remaining chicken.
Dip each coated piece of the chicken in the egg wash, shake off the excess egg and return it to the bag of flour, shaking to coat again.
Cook in hot oil until golden brown (about 3 minutes per side).
Drain on paper towels.
Combine margarine, hot sauce and dressing in a large bowl.
Place each cooked chicken tender in the sauce and toss to coat.
Serve with celery and blue cheese or ranch dressing.