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Preheat oven to 350°F. Mix bread crumbs, Parmesan cheese, garlic powder and Italian seasoning on plate. Moisten chicken lightly with water. Coat evenly with bread crumb mixture.
Heat 2 tablespoons of the oil in large nonstick skillet on medium heat. Cook 1/2 of the chicken pieces 3 to 4 minutes per side or until golden brown. Transfer chicken to foil-lined 13x9-inch baking pan. Repeat with remaining chicken, adding remaining 1 tablespoon oil if necessary. Spoon sauce evenly over chicken. Sprinkle with mozzarella cheese.
Bake 5 to 10 minutes or until heated through and cheese is melted. Serve with cooked spaghetti, if desired.