Step 1: Prepare the Chicken Batter

In a medium-sized bowl, combine the cornstarch, all-purpose flour, salt, black pepper, garlic powder, and paprika. In a separate small bowl, whisk the egg with water. Gradually add the wet ingredients into the dry ingredients while whisking, creating a smooth, lump-free batter. It should be thick enough to coat the chicken evenly.

Step 2: Coat and Fry the Chicken

Heat about 2 inches of oil in a deep pan or wok over medium-high heat (around 350°F or 175°C). Dip the chicken pieces into the batter, ensuring they are fully coated. Carefully drop them into the hot oil in batches, frying for 4-5 minutes or until golden brown and crispy. Use a slotted spoon to transfer the fried chicken to a paper towel-lined plate to drain excess oil.

Step 3: Make the Honey Sauce

In a saucepan over medium heat, combine the honey, soy sauce, ketchup, rice vinegar, sesame oil, garlic, ginger, and red pepper flakes. Stir well and let it come to a gentle simmer. In a small bowl, mix the cornstarch with water to create a slurry, then add it to the sauce while stirring continuously. Let the sauce cook for another minute until it thickens to a glossy consistency.

Step 4: Coat the Chicken in Sauce

Add the crispy chicken pieces to the saucepan with the honey glaze. Toss gently until every piece is evenly coated in the sauce. Let it cook for another minute, ensuring the chicken absorbs all the flavors.

Step 5: Garnish and Serve

Transfer the honey chicken to a serving plate and sprinkle with sesame seeds and chopped green onions. Serve immediately with steamed white rice, fried rice, or noodles for a complete meal.