Prepare the Marinade: In a mixing bowl, combine the egg, garlic ginger paste, chili powder, and soy sauce. Whisk until blended, then add cornstarch and mix to create a thick marinade. Cube chicken breasts and coat thoroughly. Cover and refrigerate for 30 minutes.

Shallow Fry the Chicken: Heat a skillet over medium-high heat and add walnut oil. Place marinated chicken pieces in hot oil without overcrowding. Fry for 6-8 minutes, turning occasionally until golden brown and crispy. Drain on paper towels.

Make the Dragon Sauce: In the same skillet, sauté chopped red onion for 2-3 minutes. Add garlic ginger paste and cook for another minute. Then add chopped red and green chilies. Stir in ketchup, honey, and sweet chili sauce; simmer for 3-4 minutes.

Combine Chicken and Sauce: Once sauce thickens, toss crispy chicken into the skillet and stir to coat in sauce. Cook for 1-2 minutes on low heat.

Garnish and Serve: Transfer to a serving platter, garnish with cashew nuts and green onions if desired. Serve hot over rice or stir-fried vegetables.