In a small bowl, whisk together flour, salt, and pepper.
In a separate small bowl, whisk together the egg and milk.
In another small bowl, combine breadcrumbs, garlic powder, onion powder, garam masala powder, chili powder, and cumin powder.
Cut Paneer in 2 inches by 2 inches by ½ inch squares (or whatever shape feels good).
Dredge a square in flour and shake off any excess. Dip in egg mix and then coat in breadcrumb mix. Repeat with each piece of paneer.
Air fry the pieces at 400° Fahrenheit for 5 minutes (do not stack while cooking) OR lay the pieces flat on a baking tray and bake at 400° Fahrenheit for 9 to 12 minutes, flipping over at the midway point.