How to Make It
In a large bowl, whisk 2 cups of the yogurt with 3/4 cup of the milk, 1 teaspoon of the crushed chile, 2 teaspoons of salt and 1/2 teaspoon of pepper. Add the chicken and turn to coat. Cover and refrigerate for at least 4 hours or overnight.
Preheat the oven to 400°. Remove the chicken from the marinade and rinse under cold water; discard the marinade. Pat the chicken dry and arrange on 2 large rimmed baking sheets.
In a small bowl, mix the remaining 1 teaspoon of crushed chile with 2 teaspoons of salt and 1 teaspoon of pepper. Brush the chicken with oil and season with the chile salt. Bake for 20 to 25 minutes, until an instant-read thermometer inserted in the thickest part of each piece registers 145°. Let the chicken cool slightly.
Meanwhile, in a large baking dish, whisk the remaining 2 cups of yogurt and 3/4 cup of milk with 1 teaspoon of salt and a pinch of pepper. In another large baking dish, whisk the flour with 1 tablespoon of salt, 1/2 teaspoon of pepper and the garlic and onion powders.
Set a rack over a baking sheet and line another baking sheet with wax paper. Working in batches, coat the chicken pieces in the yogurt, then dredge in the seasoned flour and shake off the excess. Transfer the chicken to the wax paper-lined baking sheet.
In a large enameled cast-iron casserole, heat 2 inches of oil to 365°. Add half of the chicken and fry over moderately high heat, turning, until deep golden brown and cooked through, about 7 minutes. Transfer to the rack to drain and fry the remaining chicken. Serve with Honey Mustard.