In a large bowl, combine the chicken pieces and buttermilk. Cover and refrigerate for at least 1 hour, or overnight for best flavor.
In another bowl, mix together the flour, paprika, garlic powder, onion powder, black pepper, salt, and cayenne pepper.
Heat the peanut oil in a deep skillet or Dutch oven over medium-high heat until it reaches 350°F (175°C).
Remove the chicken from the buttermilk, allowing the excess to drip off. Dredge each piece in the seasoned flour mixture, ensuring they are well-coated.
Carefully place the coated chicken nuggets in the hot oil (fry in batches if necessary to avoid overcrowding) and fry until golden brown, about 3-4 minutes per side.
Once cooked, remove the nuggets from the oil and place them on a plate lined with paper towels to absorb excess oil.
Serve hot with your favorite dipping sauces.
Notes
For extra heat, add cayenne pepper to the flour mixture.