Toss chicken, sugar, salt, pepper, garlic powder, paprika, and mustard powder in medium bowl; set aside. Place flour, eggs, and breadcrumbs in 3 separate shallow dishes; set aside. Pour oil to a depth of 2 inches into 6-qt. Dutch oven; heat over medium-high heat until deep-fry thermometer reads 325° F. Working in batches, coat chicken in flour, shake off excess, and dip in eggs; coat in breadcrumbs. Fry chicken until golden brown and crisp, about 3 minutes. Transfer to paper towels to drain. Serve with dipping sauce.