Butterfly the chicken by cutting the chicken breasts in half horizontally - each piece should be about ¼ inch thick. Lightly salt chicken breasts on both sides.
In a plate, add flour, garlic powder, smoked paprika, salt, and black pepper. Dip the chicken breasts in flour mixture and shake off excess flour.
In a large pan over medium heat, heat olive oil then add chicken breasts. Cook for about 4-5 mins per side until just cooked through. Transfer chicken to a plate.
In the same pan, add butter, sliced onions, sugar, and water. Cook the onions for about 15-20 mins, stirring occasionally, until softened and golden brown.
Add garlic and chili oil and stir for about 30 seconds. Add chicken broth, heavy cream, parmesan cheese, pinch of salt (to taste) and bring to a simmer. Add back chicken breast, spoon sauce on top, and simmer the chicken in the sauce, covered, for 5 mins until chicken is cooked through and sauce is slightly thickened.
Serve chicken with a side of rice, potatoes, or veggies.