Prep the chicken. If making more than 1 batch, heat the oven to 170°F to 200°F. Sprinkle the chicken lightly with some salt and pepper.
Prepare the breading bowls. In one bowl, combine the remaining salt and pepper with the bread crumbs, Parmesan cheese, and Italian seasoning. In a second bowl, whisk the egg with the milk. Put 1/2 cup of flour in a third bowl or plate.
Coat the chicken. Start by coating the chicken breasts completely with the flour, then dip them in the egg mixture. Finally, press each piece into the panko mixture until thoroughly coated.
Air fry. Arrange the chicken pieces in the air fryer. You might need to do 2 batches. Air-fry at 370°F for 5 minutes, then flip them and cook for an additional 4 to 6 minutes, or until browned and crisp. The chicken breasts should register at least 165°F on an instant-read thermometer inserted into the thickest part of a cutlet. Top each chicken breast with a few tablespoons of the marinara sauce and some mozzarella cheese, and continue air frying for a minute or so to melt the cheese.
A quick caution: While the cheese may stick to the marinara, lightweight shreds or thin slices can sometimes blow off in the air fryer. To prevent that, let the chicken rest in the hot fryer basket so the cheese melts gently, or switch to a “bake” or “roast” setting if your air fryer has one.