In a large, nonstick skillet, heat the olive oil and butter over medium heat until ripples begin to form.
While the oil heats, in a medium bowl, whisk together the flour, onion powder, paprika, cayenne, salt and pepper. Set aside.
In a separate bowl, whisk together the egg and water.
Season the chicken with salt and pepper. Dredge one steak in the flour mixture, then the egg and then back in the flour mixture to coat.
Add the chicken to the skillet. Repeat with the remaining chicken adding more oil as needed. Work in batches if necessary as to not overcrowd the pan. (Overcrowding will cause the chicken to steam and the coating will not get crisp.) Cook the chicken for 2 to 3 minutes or until crisp and golden brown (time depends on thickness of chicken). Flip the chicken and continue cooking for an additional 2 to 3 minutes until golden. Transfer the chicken to a platter or baking sheet and cover with foil to keep warm.