Season tenders with a little salt and pepper. Set aside. Create a dredging station by whisking milk and hot sauce in one bowl. In a separate bowl, mix panko bread crumbs, paprika, Italian seasoning, salt, garlic powder, onion powder, and black pepper.
Preheat your air fryer to 375 degrees Fahrenheit.
Start by coating chicken tenders with milk mixture and drain off excess milk, then coat chicken in panko bread crumbs mixture, ensuring all of the chicken is coated.
Place chicken in greased air fryer basket or use a parchment sheet liner. Cook on 375 degrees for 14-16 minutes, flipping and spraying chicken halfway through cooking, until chicken is fully cooked and has reached a temperature of at least 165 degrees Fahrenheit.
Meanwhile, when there are about 5 minutes left on the chicken, create the hot paste. Add peanut oil, brown sugar, cayenne pepper, paprika, dry mustard, garlic powder, and salt to a medium-sized saucepan over medium heat and whisk to combine. Once your mixture starts to bubble and simmer, remove from heat.
Once chicken tenders are done, remove from air fryer and add them to a large bowl. Pour the hot paste over the chicken and toss to combine, making sure hot sauce covers all of the chicken. Serve and enjoy.