Pound the breast halves between sheets of wax paper to flatten slightly.
In a bowl, combine breadcrumbs, 1/4 cup Parmesan, salt and pepper. In a separate bowl whisk together the egg and water.
Coat the chicken with flour, dip in the egg and then the breadcrumb mixture.
Heat a frypan with the olive oil and cook chicken cutlets until browned on both sides, about 3 minutes a side.
Preheat the oven to 180 degrees C. Oil a baking dish. Spoon in 1/2 cup Italian tomato sauce then layer the chicken cutlets. Sprinkle with 4 tablespoons Parmesan then top with the rest of the tomato sauce. Layer the mozzarella on top.