Preheat the oven to 450 F Degrees.
Cover a rimmed baking sheet with aluminum foil and place a wire rack on top. Spray it with vegetable oil cooking spray.
Place the panko in a large non-stick skillet with olive oil and cook until it is golden brown, stirring frequently, 9-10 minutes. Set aside and let it cool.
Arrange 3 shallow dishes side by side.
First shallow dish: Mix flour, garlic powder, salt and black pepper.
Second shallow dish: Place the egg whites and water and whisk until incorporated.
Third shallow dish: Stir in the Parmesan cheese with, now cooled, panko.
Pat-dry each chicken cutlet with a paper towel.
First, dredge the cutlets into flour (shake off the excess flour), second, dip into the egg whites and then lastly, coat with panko and Parmesan breadcrumbs. Press the panko mixture to coat. Place it on the wire rack.
Spray the top of each chicken with vegetable oil spray prior to placing it in the oven.
Bake it in the oven for 15-20 minutes.
While it is baking, make the tomato sauce: Place the tomatoes in a food processor and process until they are smooth. Cook the oil, garlic, tomato paste, red pepper flakes in a large skillet (in medium heat), until it coats the bottom of the pan. Stir in the tomatoes and season it with salt and pepper. Cook, stirring occasionally, until the sauce is thickened, about 15-20 minutes. Off the heat, stir in the basil.
Once the chicken is cooked, remove it from the oven. Place 2 tablespoons of the tomato sauce on each chicken cutlet and top it off with 2 tablespoons (or more) mozzarella cheese. Return it into the oven and cook until the cheese melts, for 5 more minutes.
To serve, sprinkle each chicken cutlet with ribbons of basil and Parmesan cheese.