Pour salad dressing into a large food storage bag or 13x9-inch baking dish; add the chicken pieces and turn to coat well. Seal bag or cover dish and refrigerate for 4 hours, turning occasionally. Drain and reserve the marinade. Combine egg and water. In another food storage bag, combine Parmesan cheese, bread crumbs, parsley, salt, pepper, and paprika.
Dip chicken into the egg mixture, shake, then put in bag and toss to coat with bread crumb mixture. Place chicken in baking dish. Spoon remaining salad dressing over the coated chicken, if desired. Bake in a preheated 350° oven for 45 to 50 minutes, or until chicken is tender.