Prepare the chicken: Slice each chicken breast in half lengthwise to create four thin pieces. Pat dry with paper towels to help the coating stick. Season both sides with salt and pepper.

In a shallow bowl, beat the egg. In another shallow bowl, mix the panko breadcrumbs, Cajun seasoning, and garlic powder.

Dip each chicken piece into the beaten egg, letting excess drip off. Then coat thoroughly with the breadcrumb mixture, pressing gently to adhere. Set aside on a plate.

Start the grits: In a medium saucepan over medium heat, combine milk, chicken broth, and salt. Bring to a gentle simmer. Slowly whisk in the grits. Lower heat to medium-low and cook, stirring frequently, for about 20 minutes until thick and creamy. Add a splash of water if grits stick to the pan.

Cook the chicken: While the grits cook, heat oil in a skillet over medium heat. Cook the breaded chicken in batches to avoid crowding, about 3–4 minutes per side, until golden brown and cooked through (internal temperature of 165°F). Transfer to a plate and let rest for a few minutes, then slice thinly.

Remove grits from heat and stir in black pepper, butter, and shredded cheese until melted and smooth.

Serve the cheesy grits topped with sliced Cajun chicken and hot sauce to your liking.