First, stir together the buttermilk and 2 tablespoons of the hot sauce in a large bowl. Submerge the chicken into this buttermilk mixture, cover, and refrigerate overnight.
The next day, or about 8 hours later, whisk together the eggs, water, and remaining 1 tablespoon of hot sauce in a medium bowl. In a separate bowl, stir together the flour, salt, cayenne pepper, black pepper, paprika, and garlic powder.
Pour oil to a depth of 2 1/2 inches in a large Dutch oven or deep frying pan, and heat to medium-high. Remove the chicken from the buttermilk mixture, and discard the mixture. Dip each of the chicken pieces in the egg mixture, and then dredge it in the flour mixture. Repeat dipping the chicken into the egg mixture, and dredging in flour again.
Carefully place 3 to 4 pieces of chicken into the hot peanut oil, and fry until they're golden brown and cooked through- about 8 to 10 minutes. Take them out and lay them on a plate lined with paper towels. Repeat with remaining chicken pieces. Serve hot and enjoy.